Life Insurance FAQ
Why do I need life insurance?
There are many reasons for buying life insurance. If you’re the primary wage earner in the family, life insurance
is a good way to help provide your family with a stable financial future.
While it’s difficult to face our own mortality, planning for it can ease the burden our loved ones will face later.
Purchasing life insurance can help make a difficult situation easier by providing death benefits for:
- unpaid medical bills
- income replacement for survivors
- final expenses like burial costs
- unplanned or emergency expenses
- future education funds for your children
Remember, you can also use some life insurance products:
- to help you establish an estate plan
- as a component to your savings strategy
- for retirement income
- even to pay for estate taxes
What should I consider?
Every person has a different idea of what financial security means. If something should happen to you, how much money would your family need? You should consider:
- your current debt
- expenses your family can expect to pay after your death
- your family’s future needs
A general rule of thumb to calculate your life insurance needs is to multiply your annual salary by seven.
