Determining Your Life Insurance Coverage Needs
Like auto insurance coverage, it is sometimes difficult to see the true value of life insurance coverage until you actually need it. In the meantime, the only way you will feel comfortable with your life insurance policy is if you understand, and agree with, the reasons you bought it in the first place. There are many reasons for an individual to own life insurance coverage. Perhaps the most compelling reason is to purchase a death benefit which will provide for the financial needs of their survivors.
Determining how much life insurance coverage you need is a four step process:
1. Determine total short term needs in the event of your untimely death
2. Determine total long term needs in the event of your untimely death
3. Determine total resources available to family members
4. Provide insurance coverage for any remaining shortfall
Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary therefore, the information should be relied upon when coordinated with individual professional advice.