Do you have enough life insurance? A quick coverage check-up
Summary
The article explains why people should regularly review their life insurance amounts as their financial situations change. It gives steps to help decide if current coverage meets needs based on income, debts, and available savings.Key Facts
- People often buy life insurance around big life events like marriage, buying a house, or having children.
- Financial needs change over time, so life insurance needs may also change.
- Instead of focusing just on the coverage amount, consider what financial needs the insurance should cover.
- Calculate how much income your family would need if you were no longer there to provide for them.
- Include the value of unpaid work like childcare when thinking about coverage amounts.
- List major expenses that life insurance should help with, such as a mortgage, debts, or college costs.
- Subtract any savings or existing insurance that could support your family from the coverage needed.
- Avoid counting funds that are needed for other important purposes, like retirement or emergencies.
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