Life insurance is a way for individuals to protect their family in the event of their demise. Without it, the tragic and sudden death of the main monetary provider could leave a family in financial jeopardy, making it difficult to maintain the lifestyle that they’re use to or even keep their home.
Unfortunately, most families in the United States are underinsured. It’s important to understand that life insurance is a crucial toward your overall financial plan. Today, most advisors recommend a life insurance policy with a death benefit of up to 20 times your household income.
When calculating the amount of life insurance you need, you must take into consideration how much is necessary at death to cover immediate obligations and how much is necessary to sustain the household.
Reasons to make life insurance the cornerstone of your financial plan include the following:
- Life insurance can replace income – If you have dependents, you must think about what would happen to them if you can’t provide the household. In addition, it can also help supplement retirement income.
- Life insurance can be used for estate planning purposes – It can be used to play estate taxes, preventing your heirs from liquidating other assets to pay for them.
- Life insurance can cover your outstanding debt – Without it, your family must cover your medical expenses, burial costs, and credit card debts.
- Life insurance can cover long-obligations – It can used to pay off mortgage, supplement retirement savings, or pay for your children’s college tuition.
At Insurance Specialists Inc., we can help you determine the right amount of life insurance necessary to make it become a substantial financial plan for the future of your loved ones. Contact us and find out more about our services today.