Do you have life insurance? In almost every case, you should.
There are several things to keep in mind when choosing how much insurance to purchase:
1. How much would it cost to replace you? – Financially that is, not emotionally. What type of work do you do? I’m a stay at home mom, with a bit of income, and to replace me would cost my husband day care, plus the cost of my lost income, plus some help around the house.
It add ups quickly!
2. What expenses would need to be paid immediately upon your death? The insurance would come in handy for those left behind to pay for burial costs and obituaries. (Have you priced one lately? We spent $500.00 for a few small paragraphs about my late Mother in Law – Surprise!) We also spent money to bring young relatives in for a funeral.
3. If your household would go from two down to one income, think about what expenses will be left:
Should your mortgage be paid off in case of your death?
Is there money to fund a college fund?
Can credit cards be paid off? (Do you still have them?)
If you have enough money in the bank to pay all these expenses, you may not need life insurance.
Sate Farm has a life insurance calculator to help you figure out your needs. it was a bit scarey to actually think through everything I’d need to provide for if something happened to my Hubby.
I’m sure other companies also have them, – check with your car or homeowners insurance company if you are interested in life insurance to see what they offer. You can also purchase life insurance from independent brokers.
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