While the answer to this has to be completely formed on an individual level, it’s always best to clearly lay out your financial as well as family situation with a qualified insurance agent in order to make sure that you make the best choice on a policy or policies.
Life insurance doesn’t have a depressing hard to broach the topic. The fact is that life insurance isn’t just for the case of death. Life insurance, of course, pays a sum out to your designated beneficiaries should you pass away, helping to take care of loved ones so they don’t have to struggle financially through your loss. Life insurance can also be designated to pay for final expenses and funeral costs so that the burden doesn’t fall on relatives. Funerals have grown to be quite expensive coming in on average anywhere from $7,000 to $10,000.
The rule of thumb in the industry, if you have a family that relies on you, is that you should have policies 10 to 12 times your yearly income. With that money well invested they can live comfortably on that.
It’s very important to note that debt owed doesn’t vanish or cancel when you die. Student loans, mortgages, car notes, credit cards… all of them will come after your estate at the time of your passing. That needs to be factored in or your families planned inheritance could be eaten away at if not completely swiped out from under them.
Another important factor if you have kids, do they plan on attending college? If so that is a huge addition that needs to be considered so they don’t end up drowning in student loans. You may want to bump up policies by $100,000 each in order to cover rising costs and living expenses during that time so they are able to focus on their studies.
If you haven’t gone over your life insurance policy inclusions and exclusions lately we would like to invite you to review your policies and let us double check to make sure you have enough as well as the right type of insurance. Give Centennial Insurance Services a call today at (239) 247-5125 or visit www.cisinsfl.com to learn more