Many people do not like talking about life insurance — in times of health and relative ease, it can be an uncomfortable conversation. Moreover, the complexity of determining exactly who needs it and how much they need can be a little overwhelming. The number of people uninsured or underinsured continues to increase as more and more people forgo it altogether, unsure of where to find reliable information regarding life insurance. To help answer the first question, anyone who has financial dependents but does not have enough savings needs life insurance. Life insurance gives you a peace of mind by knowing that your dependents will be financially covered even after you have left them. In the past, the formula for “how much” was seven to 10 times their total annual income, but that left many under-insured. It is good to keep in mind that there is no one-size-fits-all when it comes to life insurance. Take the time to crunch the numbers and discuss your family needs with your spouse to come up with a reliable estimate. Now that you understand why you need life insurance, below is a simple four-step guide to help estimate the amount of life insurance you need.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.