Have you ever thought about what would happen to your family if something happens to you? All of us have at one point or another, even if it is in the form of mental frantic love letters sent to family members during bad air turbulence. But attention to protect your family financially should not change worry if you follow these steps.
1. Take a look at what that means for your financial security.
Just like the “rich” means different things to different people, as well as financial security. Start by asking yourself what would happen if the breadwinner dies prematurely (which could be you or your spouse or partner). You want your loved ones to be OK financially, but does it mean to have a sufficient income… for a lifetime? …So they do not need to get out of your home and the environment?… Enough money for your spouse or partner for the transition to work if they are parents who stay at home?… To give your kids through college or perhaps only partially and have them pay the rest? Once you establish that, you can switch to the plan put in place.
2. Determine the need for desire.
They are not the same. You may want to finance 100% security for your spouse to provide their lifetime and your children through college, but can you afford it? Most of us do not have the savings to achieve this, which entered life insurance. You’ll want enough money or death benefit if invested at current market prices (2% -4%) that you can produce your (or) lost income your spouse. That means you may need more life insurance than in the past. Before, the result of an investment of $500,000 life insurance benefits can be replaced, salary $50,000 / year. Now you might need $1 million coverage to achieve the same goal.
3. Look at the full picture.
It’s not just about insurance-that life is only one part of the formula. You need to see all of your assets such as money in a retirement plan, your benefit package, your investments may have, for what money your family will get from Social Security, life insurance you already have in place, etc.
In addition, people often have several families to take care of the economic requirements which may be laid out in the divorce decree. Or they may have special needs children who will never be able to work. In that situation, the trust must be established with the assets financed or death benefit-to create an income stream during their lifetime. Plus, many of us will have both adult children of aging parents or we stay with us now or in the future we may be responsible for financially.
Once you have these numbers, you can find out what are the shortcomings-which can be funded with life insurance or life insurance is that you currently have. It does not have to be a very difficult task to start. Use the online Life Insurance Needs Calculator, which has an input for the type of information and can help you get an idea that works of how much life insurance you may need to cover any shortfall.
4. Get help if you need them.
Sometimes we need for life insurance is easy. Often, though, when we have to factor in special circumstances can be more complicated. Insurance agent is there to help. That’s their job. They will sit down with you, at no cost or obligation, and went through these steps with you and then help you come up with a solution that you can afford. You may “want” life insurance policy permanently to secure the financial future of your family, but the agency can show that what you “need” is really a life insurance policy that you can afford without straining your budget or perhaps it is a combination between two. If you do not have an agent to work with, you can start with tips for finding one and Agent Locator, search it in Google.
5. Do not forget about disability insurance.
If you and your family depends on your income, then you need to make sure that you have disability insurance. Ask yourself honestly if you get sick or injured and unable to work, how long you can survive financially without your salary? In a survey of life happens do we find that most Americans will feel the pinch in a month or less. Keep in mind that Social Security pays disability benefits that average about $1,100 per month, and can take years-often longer-even getting the payment.
Disability insurance pays you a portion of your income if you become ill or injured and unable to work. It can be offered as part of your benefits package through work, but be sure to check with your HR department, and find out what percentage of your income to be replaced (often 60% or less). You can also buy an individual policy, you have, and do not depend on your benefits package is reduced or even eliminated. To get an idea of ?? How much work you might need, you can use Disability Insurance Needs Calculator, search it in Google. Again, this is something that an insurance agent can help you find out too.