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Do You Have Enough Life Insurance

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In the event of your passing from this mortal coil, are you sure your family will be able to get by with a minimal amount of struggling, now that your income and support have been stripped away from them? Each year, thousands die leaving their families swimming in debt and funeral expenses, simply because they didn’t plan ahead. In fact, statistics suggest that four out of ten adult deaths lead to financial hardship and burden for those family members left behind. By understanding the expenses related to your passing and what bills your family will have to cover without your income, you should be able to determine what the proper amount of life insurance is for them to survive on if you are not around to assist with the day to day expenses you have up till now taken for granted.
Recurring Expenses
First and foremost, the largest expense most families have nowadays is a monthly mortgage. With proper financial assistance and advice, many of these recurring expenses are within a reasonable realm for two incomes, but should one disappear with an untimely death, the burden doubles for the surviving spouse. There are also auto loans, credit card debt, as well as grocery bills, higher education costs, and general family expenses. With an income stream cut in half, a reliable life insurance policy is definitely a safety net should something happen. Determine the proper amount based on how many years it would take a family to readjust financially to a loved one’s loss, and how the bills stack up annually. Many early-incurred life insurance policies plan between 20 and 40 years of payments on these factors, but you may wish to plan for more based on the comfort level you wish to leave behind for your family to live on.
New Financial Burdens
Not only are there the recurring bills, but now the added expenses associated with a funeral to deal with as well. It is not unusual for a simple funeral to cost over $20,000. This includes everything from purchasing of the casket, the funeral home expenses, and loss of income of the survivors during the grieving process. Be sure to factor in additional expenses as well. If the death was caused by a fire or an accident, there might also be damages to take into account for reparation. Each situation is different, but a good life insurance agent will be able to help you build a solid foundation in the untimely even of your passing. Your family will be grief stricken, but with proper planning, they won’t be financially burdened as well.

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