When you’re no longer around just how much money will your loved ones need? We obviously know that we want to leave them with enough, but most of us haven’t taken the time to think about just how much “enough” is. Now is the perfect time for you to figure out how much your loved ones would need in your absence. Starting up a policy with one of the great life insurance companies in Memphis is a perfect way to ensure that the ones you love will receive exactly what they would need in your absence. Your next step in finding the perfect policy is learning just how much life insurance you need and the important mistakes to avoid.
How much life insurance do you need for your loved ones?
- Have a large amount of debt?
- Plan on paying for your children’s college tuition?
- Have a spouse that doesn’t work?
- Have a parent that does or possibly will require assisted living?
- Have a mortgage?
These are a few of the many things to consider when deciding how much coverage you need with your policy. There are varying opinions as of to whether your coverage should be five times or ten times as much as your income & etc., but to be completely honest it varies from person to person because we all have unique family & financial situations.
The best way to determine how much life insurance you really need is to evaluate your situation by asking yourself the questions listed above. Add up all of the expected expenses you can think of, take inflation into consideration, and that will give you a good estimate of how much coverage you need.
Keep in mind when choosing your amount of coverage that it doesn’t hurt to give your beneficiaries a bit of cushion to ensure they are well taken care of because too much is far better than not enough.
Common mistakes to avoid
- You don’t need life insurance because you’re healthy: Life insurance is not about you, but rather it’s really about the well being of your family & those you provide for. In our world today we are at risk for being involved in motor vehicle accidents, plane crashes & just being in the wrong place at the wrong time, therefore unfortunately your health is not enough to give you peace of mind.
- You will get it later on in life: The sooner you get a life insurance policy the better, because the rates actually increase as you get older.
- You just can’t afford it right now: Your policy will be custom designed to fit your current financial needs. Here at the Hudson Agency we want to make sure our clients are not put in difficult financial situations so we would only recommend a policy that we know you can afford & are comfortably able to make payments on each month.
Life insurance really isn’t difficult to understand, but these common misconceptions stop most people from even considering a policy. You are already on the right track by seeking useful information, so take action now & don’t wait to become victim of these mistakes.
Now that you are familiar with how to determine the amount of coverage you need your final step is to understand the purpose of the different life insurance policies & to decide which life insurance companies in Memphis will best suit your needs.
Get free expert insurance advice before you shop for your next policy. It pays to be prepared so check out our blog and take advantage of the several topics we cover so you won’t have to think twice about your next move.