Did you know that the number of U.S. households with no life insurance coverage at all has grown to 30%? That’s 35 million households! Among households with children under age 18, 11 million have no coverage – this is according to LIMRA’s 2010 Life Insurance Ownership Study.
Unfortunately, these numbers don’t even discuss the number of households that are under – insured in the US. Just because a family has life insurance, doesn’t mean they have enough.
From my experience, the two major reasons people don’t have enough life insurance is:
#1 – People don’t know how much life insurance coverage they need.
#2 – People don’t know where to go or who to talk to about getting the right amount of coverage.
So, how much life insurance do you need?
Obviously this number is going to vary dramatically from person-to-person and family-to-family, but a very general rule of thumb is that you should have at least 10 times your annual salary. So for example, if you make $50,000/yr., you should have at least $500,000 of coverage.
Remember, the main purpose of life insurance is to financially support your loved ones when you are gone. If your family, and/or someone you love, is financially dependent on you making money, then you need life insurance.
Some major factors that need to be considered and discussed before purchasing life insurance are:
- Your Age
- Marital Status
- Health Issues
- Cost to Pay Off Mortgage
- Cost to Pay Off Major Outstanding Debts
- Educational Funds for Children
- How Many Children You Have
- Total Family Income
- Existing Assets
- Amount of Income Needed for Spouse/Loved Ones
So where can you go and who can you talk to about life insurance?
Me, of course! (honestly, what did you think I was going to say!?!?)
Think about it though. Life insurance is a very serious purchase that involves your loved ones. This could be the most important financial decision you make for your family. When you pass away, your family is going to be dealing with a million different emotions. Do you want worrying about money to be added to that list? Making the right decision means your family won’t have to worry about money when you pass away. This will allow them to better deal with all the other issues of losing you.
Do you want to make this decision in haste? Do you want to rely on the Internet or some website to make the right decision for you? Do you want to rely on some flyer in the mail to tell you how much coverage you need?
Wouldn’t you rather talk to a qualified professional who will sit down with you, discuss all the factors that should play a role in your decision making process, and help you make the right decision?
For more information on how I may be able to help you, please call me to discuss this important decision. For those of you that know me, you already know that there is no obligation and there is no pressure from me to talk.
Contact me anytime!