How Much Life Insurance Do You Need?

This article provided by our friends at Leavitt Group

Life insurance can help your loved ones meet their expenses and maintain their standard of living in the event of your premature death. Following are a few things to consider as you determine the amount and type of coverage to purchase:

• Will your family need to replace your annual income, or will your spouse’s income be sufficient for their needs?




• If so, how much will be needed? Are you close to retirement, or are you providing for a young family? The coverage you will need is tied to the amount of income that would need to be replaced.




• What debts do you have that your family will have to cover? Things like a mortgage, vehicle loans, student loans and credit cards should be considered. Remember to take into account funeral expenses as well.




• What specific future expenses would you like to plan for? These include things like general living expenses, college costs, weddings or other life events.




• At the very least, purchase enough coverage to pay your debts and funeral expenses.




• Make sure the policy you purchase has affordable long-term premiums. You’re better off purchasing a policy that fits into your budget than choosing one with premiums beyond your capacity to pay, risking lapsed coverage due to missed payments.

Still have questions? Mountain America Insurance can guide you forward with helpful advice for you and your family.

 

*Insurance products are not deposits, not an obligation of and not guaranteed by Mountain America Credit Union. Insurance products are not protected by the NCUA, may be subject to risk and, in the case of life insurance, may go down in value.