What would your family do if you died tomorrow? That is a tough question that you need to spend some time thinking about. Will your family be able to maintain their same lifestyle? Do you have a lot of debt? Young kids? A business partner? A special needs child or parent you are caring for? A non-income producing spouse?
Everyone’s situation is different, but we’ve found a simple formula that works pretty well:
Loans—What would it take to pay off all your debt? Are you planning on upgrading your home in the future or buying a second home?
Income—Is your spouse working? If all your debt is paid off, can your spouse maintain the same lifestyle? Most families need between 5 and 15 times their income of life insurance.
Final expenses—Funerals can be pretty expensive.
Education—Do you plan on financially helping kids with college? (Newborns are projected to be near $300,000 for a college education!) Do you have a plan to fund their education? If you pass away, will your spouse have to go back to school?
There is definitely a lot to think about! Reach out to your friends at Ieuter Insurance Group for help with selecting a life insurance policy that fits your needs.