It’s nobody’s favorite question, but it’s one worth asking: Do you have enough life insurance?
Policies that were once a perfect fit can become outdated after significant life changes like having a child. Even small changes over the years can call for an update.
No matter what your situation is, it’s important to determine if you and your loved ones have the protection you need. Here’s where to start:
Who needs life insurance?
If anyone — children, a spouse, a differently abled relative, an aging parent — depends on your income or assistance, you should probably consider life insurance.
How much do you need?
You should carry enough life insurance to replace the funds and services your loved ones rely on. This might include enough money to pay off the mortgage and other debts, support your children through college or provide in-home care for an elderly relative.
Note: Even if you have life insurance through work, it’s smart to carry your own policy.
What are some differences between term and permanent?
Term life insurance lasts for a certain number of years: often 10, 20 or 30. It’s designed to cover the period when your spouse or children rely on your income.
Once your mortgage is paid off, your children are self-sufficient adults and you’ve accumulated a retirement nest egg, you probably no longer need term life insurance.
Permanent life insurance lasts for as long as you’re alive and you keep paying the premiums. It costs more than term, but it can be a good fit for families who need a guaranteed payout.
Is it time to review your coverage?
It’s important for everyone to review their coverage regularly. If it’s been a few years since you purchased your policy or you’re unsure if you have enough coverage, reach out today.