In our field, expecting the unexpected is the norm. Helping people confidently prepare for it is what we do best. Our qualified agents are here to review and clarify various life insurance options, so you can size your ideal safety net for whatever the future may bring.
IMPORTANT LIFE FAQS
How much life insurance should I have?
In most cases, if you have no dependents and have enough money to pay your final expenses, you don’t need life insurance. If you want to create an inheritance or make a charitable contribution, you may choose to buy enough life insurance to achieve those goals.
You may also choose to buy enough life insurance that, when combined with other sources of income, it will replace the income you now generate for your dependents, plus enough to offset any additional expenses your dependents will incur to replace services you provide.
You may also plan to replace “hidden income” that would be lost at death. This is income that you receive through your employer that isn’t part of your gross wages. It includes things like your employer’s subsidy of your health insurance premium, the matching contribution to your 401(k) plan and many other benefits.
Of course, you should also plan for expenses that arise at death. These include the funeral costs, taxes and administrative costs associated with finalizing an estate.
What other sources of income are considered?
Most families have some sources of post-death income besides life insurance. The most common source is Social Security survivors’ benefits. Many people also have life insurance through an employer. If you have a vested pension benefit, it might have a death component. Although these sources might provide a lot of income, they rarely provide enough.
Should I purchase life insurance as a multiple of my annual salary?
Many sources recommend buying life insurance equal to a multiple of your salary. For example, one financial advice columnist recommends buying insurance equal to 20 times your salary before taxes. The “multiple of salary” approach also ignores other sources of income, such as those mentioned previously.