Do you have enough life insurance to provide for your family if
something happened to you? Protecting your family is important, but you
also need to avoid spending extra money on insurance that is needed for
other purposes. The key is to find the right balance. The amount needed
depends on your situation and usually fluctuates throughout the life
cycle.
If you have dependent children, life insurance is most likely a
necessity. If you are single with no dependents and have other assets to
cover funeral expenses and outstanding liabilities you may need little
or no coverage. Divorced couples may want to consider carrying a policy
on the ex-spouse if he or she depends on that person for child support.
Consider the following questions when estimating your life insurance needs:
- How much will my family need to meet immediate needs such as funeral expenses and outstanding debts such as a mortgage?
- How much will my family need to sustain their standard of living?
- How much is needed for long-term expenses such as college for children?
- What financial resources such as investment assets, Social Security
survivor benefits, and other life insurance policies would be available
to meet these expenses?
For additional information read the publication “An Overview of Life
Insurance” which discusses different types of life insurance
http://edis.ifas.ufl.edu/fy1393
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