How is Life Insurance Like Fun?
There’s a meme making the rounds on the internet that says, “Life Insurance is like fun…the older you get, the more it costs!” After a summer jam-packed with activities, you might be feeling the cost of “fun,” just a little bit!
September is not only back-to-school month, but it is also designated as Life Insurance Awareness Month. Just as we fill a backpack with supplies for our kids, so should your financial plan “backpack” be prepared with the appropriate life insurance products to take care of your loved ones.
Here is a little financial planning homework for you to do. First, review what insurances you already have in place to protect your family. How much life insurance does your employer provide? Gather together all those old policies that might be hanging around in drawers, etc. Do you have any life insurance coverage with credit unions, credit cards, etc.? Total these policy amounts. Ask yourself, “What happens to my family if I don’t come down for breakfast?” Do you have adequate life insurance to continue to provide your family with their current standard of living? Will there be enough for your children to be able to attend the college of their choice? Will your spouse be able to have a reasonably comfortable lifestyle after you are gone?
Next, determine the type of insurance you have: Term, Cash Value, Universal Life. Not only do you need to have the proper amount of insurance, but you also need to have the appropriate type. What type is the best for your individual situation? How long will the coverage last? Which type of life insurance is most cost-effective for you and your family?
Finally, consider whether you have adequate coverage for both spouses, regardless of how much each spouse earns. How will you pay the bills to manage your household if your spouse predeceases you? Don’t forget to consider how you might pay for services that are part of your everyday routine, such as child care, lawn care, housekeeping, car maintenance, etc., which might require “outsourcing.” A life insurance policy can provide the funds that will allow the surviving spouse to hire the necessary assistance. They will not have to suffer a downgrade to their current lifestyle during a time that is already stressful and upsetting.
Whew! That is a lot of questions/homework. We are available to “tutor” or assist you with your life insurance review assignment. Consider calling us to create a financial plan that includes a detailed life insurance review. It’s a homework assignment that will give you tremendous peace of mind when you’ve completed it.