Whether you have a small family, a large one, or you hope to expand your existing family in the near future, you also need to think about how your family would fare if you were to experience a tragic accident. When you consider how much life insurance you need, think about the following three factors:
- What does your employer cover? – Many people have life insurance through work. Therefore, if you have sufficient coverage, there is no need to pay for separate insurance.
- Will your family need more than your existing coverage? – Life insurance through an employer rarely covers everything your family will need. So you will need to set an amount and subtract the coverage you already have. How do you calculate what your family would need to be comfortable? Our next point will help.
- What is your life insurance policy replacing? – There is no replacement for you, but you can plan ahead to cover certain expenses your family will face. For example, you will want to think about burial expenses, income replacement, mortgage, college tuition, and other big financial matters that would otherwise have been handled by your weekly income for years to come.
Financial Planning Advice from the College Planning Experts
At College Planning Source, we do so much more than just help kids get into college. We also help families to make smart financial decisions that can affect your future. For example, will your children be able to afford college if you were to pass away with your existing life insurance coverage? For more financial planning assistance, call us today at 858.676.0700 or contact us online.