“Life Insurance” is a subject that
many people tend not to want to discuss.
The loss of a loved one and the ensuing transition for the remaining
family members is a difficult process.
Having adequate Life Insurance coverage in place can help ease the
financial burden of making this life stage transition easier. Clients often don’t know where to start when
considering how much coverage they need for their family. The following acronym lists some areas you
should consider when evaluating how much Life Insurance coverage your family
needs:
L. I. F. E.
1.
Loans – How much debt do you currently have? How much of that debt would you want fully
paid and not left for your family to manage?
This category typically comprises of mortgages, credit card debt and
other types of revolving credit accounts.
2.
Income – How many years of your current income would you
like for your family to have in the event of your untimely passing? Life Insurance can provide a solution for
replacing future income for your family.
3.
Final Expenses – The average funeral costs
approximately $10,000. This cost can be
more or less expensive depending upon the services you choose and your
geographical location.
4.
Education – If you have children that plan to go to
college, future education expenses can be a consideration in evaluating how
much coverage you need. Do you plan to
send your children to public or private universities? There are many resources you can utilize to
research and estimate the cost for attending college. One resource for college planning is www.collegeboard.org.
If you have additional questions regarding how to evaluate how much
coverage your family needs, please stop by my offices in McKinney, Texas or give me a call at (972) 727-9111.
Stan Polk, CPCU – Agency Owner
6951 Virginia Parkway, Suite 316
McKinney, Texas 75071
Have some
tips or comments to share on choosing the right amount of Life Insurance
coverage for your family? Share your thoughts in the comment section below. Or
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I am a Farmers® agent but my posts are my own and are not statements by or on behalf of Farmers.
