Welcome the Season with Life Insurance Awareness Month
September is Life Insurance Awareness Month, also known as LIAM! LIAM is a nationwide campaign that was coordinated by Life Happens in 2004. The campaign is meant to inform the public about the importance of obtaining the appropriate type and amount of life insurance coverage to keep them and their loved ones protected in grim circumstances.
Questions to Ask Yourself
When taking into consideration the needs of your family, it can be easy to underestimate how much they’d need to move forward in the event of your death. To avoid fearing this difficult hypothetical, here are a few questions to ask yourself as you reevaluate your life insurance coverage this month.
How much money would your family need to live on if you were not to make it home today? Naturally, you would want your family to maintain their standard of living if you were to suddenly pass on. You should take some time to look over all bank statements to determine how much your family currently spends each month. A great tip is that your policy payout should equal 7 to 10 times your income. Once you come up with that final figure, you’ll have a better idea as to what kind of coverage you need.
What are your assets? Your savings, bonds, stocks, real estate properties, precious objects or heirlooms, certificates of deposit, and other investments, such as a 401(k) and additional life insurance policies are all assets that should be reviewed. You can make a quick estimate as to how much coverage you need by adding up the value of all of your assets and subtracting your standing debts. You may find that there is no need to replace all of your income.
How much debt do you have? Most of the debt that you currently have will fall to your family in the event of your unexpected passing. If you would hate to leave them with the burden of those debts, it’s a good idea to sit down and calculate the remaining sum total of everything you owe. Keep in mind that you’ll want to include your mortgage, credit card payments, car loans, etc.
Any special circumstances? Everyone’s financial situations are different. You need to take special circumstances into consideration when deciding on coverage. This can include funeral costs, tuition, wedding or graduation celebration budgets, the price of care for special needs children, etc. These expenses can add up and will need to be accounted for.
A great way to celebrate Life Insurance Awareness Month is to ask yourself these important questions and determine if you have the appropriate coverage. Make sure your family is covered so that you can take some of the fear away from potential tragedies.
Life Insurance Questions?
We hope that this information on Life Insurance Awareness Month is useful to you.
If you’d like to learn how we can help you plan your retirement, call Empower Brokerage at (888) 539-1633 to speak to one of our Life and Annuity experts or leave a comment down below.
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