Life Insurance: Do you Have Enough Coverage?
Posted on: November 3, 2015 by Javier iSure
Miami Life Insurance, although a topic that most aren’t fond of discussing, is a critical component to add to your personal insurance program. While simple shortcuts exist, such as simply acquiring coverage that is equal to approximately 10 times your annual income, they are not miracle solutions that can be applied to each person or family equally. Take the following scenarios into consideration to ensure your family is equipped with adequate coverage in the event of serious illness or injury.
The main reason for obtaining life insurance is to allow your family to be financially covered in the event one of the incomes is lost. Therefore, that’s why some experts and most online calculators sponsored by the insurance industry seek to figure the chunk of investment capital it would take to replace all of your income for 20 years or longer, held securely in Treasury or municipal bonds and certificates of deposit, according to Kiplinger. However, this poses an issue now as people are living longer than previous generations. Rather than be over or under protected, consider these tips and speak with your trusted insurance agent.
Final Expenses- Funerals, burials, and cremations can cost upwards of $10-20,000. These expenses can be covered by the life insurance policy.
Mortgage- Hefty bills each month that can be large weights on your family members should be considered when planning your life insurance coverage. This includes, but is not limited to mortgages, car payments, student loans, etc. Factor in these debts so that your loved ones are guaranteed shelter and protection in your absence.
Education- Estimate the cost of tuition by the time your children reach the appropriate age. As college costs typically rise 5% per year, life insurance premiums are likely to rise, as well. Bear in mind that you are able to request that partial or total costs to be covered.
Replacement of Income- After the big ticket items listed above are taken care of, your family won’t need to depend on on 100 percent of your income. Financial Planner Tim Maurer recommends covering 50% of current pretax earnings until retirement which can be translated by taking that figure and multiplying it by .05. This should ensure your family receives benefits of 5 percent per year. While this coverage, which can be purchased in increments up to $1 million, may sound daunting, extra coverage can be added for a mere few hundred dollars per year.
While these guidelines are intended to give you a fair scope of what to expect and plan, each individual should consult with a life insurance professional to obtain the coverage that is best suited for their needs, lifestyle, health conditions, and more. At iSure Brokers, we strive to give you and your loved ones peace of mind with comprehensive insurance packages. To learn more about our expertise and products, we invite you to contact us today at (855) 381-6123