We can’t be sure of some things in life — like exactly when we’ll die. So we need to plan ahead for the financial needs of our loved ones and anyone who depends on us just in case. If you die unexpectedly, how will the lives of your loved ones be impacted? What if your spouse or partner were to pass away? Don’t leave your loved ones in a financial bind when you’re gone! Give the lasting gift of life insurance.
The need for life insurance
Life insurance can’t make up for the loss of a person to their loved ones, but it can provide financial support to help with expenses at a difficult time and into the future. Imagine your life and the lives of the people you care about. Now, imagine their lives with your presence removed. This can really get you thinking:
- Your earnings disappear
- There are funeral costs
- There’s a mortgage to pay
- College expenses are on the horizon
Life insurance can be one of the most loving gifts you can give.
The ones you love
Spouses, partners and children quickly come to mind when you think of providing for others. If you are a single person with no dependents, you may think your life insurance needs are limited. But what if you have a disabled relative or aging parents to care for — if not now, perhaps in the future?
If your spouse or partner works for a paycheck, don’t ignore their contributions to the household. Child care, shared household responsibilities, children’s activities, and just being a parent all involve time and effort. This is on top of the loss of earned income that may happen. Life insurance coverage for one spouse or partner may not be sufficient.
How much life insurance should you get?
Consider buying enough to pay off your mortgage and consumer debts and replace some or all of your income. If you want to pay for college for children, add that in too! A lot will depend on your age, the age of your spouse and children, debts, and funeral costs. Do the math for your unique situation and discuss with your insurance provider to ensure that the future of your loved ones are all you hope them to be.
Article provided by Local Government Federal Credit Union.
The advice provided is for information purposes only. Contact your financial advisor for additional guidance.