Your future earnings are likely to be your biggest asset, so you’ll want to use this number as the basis when you estimate your insurance needs.
If your job is taking care of the household and the children, make sure you’re insured for the amount it would take to hire someone — or several people — to perform your duties. Child care, transportation, cleaning, cooking and other household activities are important tasks, the replacement value of which is often greatly underestimated.
Additionally, consider these aspects when determining how much life insurance coverage you need:
- Getting a pay raise or a new job
- Owning your own business
- Employer-sponsored life insurance
Getting a pay raise or a new job
Your life insurance coverage should keep pace with your income; when it increases, either through a pay raise or a new job, so should your amount of coverage.Speak with a Planning Consultant at 1 877 276-9429, or have a Planning Consultant call you.
- Getting a pay raise or a new job
- Owning your own business
- Employer-sponsored life insurance
Owning your own business
If you own your own business, you’ll need to consider the impact your death — or that of a partner or a key employee — would have on its continuation.Life insurance can provide ready cash to help sustain the business while it gets back on its feet, or can be structured to fund a buy/sell agreement.
This would help ensure that the remaining business owners have the funds to buy the company interests of a deceased owner at a previously agreed upon price. That way, the owners get the business, and the family receives the proceeds.
Speak with a Planning Consultant at 1 877 276-9429, or have a Planning Consultant call you.
- Getting a pay raise or a new job
- Owning your own business
- Employer-sponsored life insurance
Employer-sponsored life insurance
Although your employer may provide coverage under your employee benefits program, the amount, which is typically one to two times your salary, may be insufficient to fully meet your needs. And, employer-sponsored insurance may not be portable — if you leave the company, you may lose your coverage.For these reasons, you should consider supplementing employer coverage with your own life insurance coverage.
Speak with a Planning Consultant at 1 877 276-9429 or have a Planning Consultant call you.
