How Much Is Enough Life Insurance?
When we get old, we all need to know that we would need insurance to pass it down to our family when we die. The question is how much is enough life insurance for us? In truth, there is no definite answer for that as it would always depend on the situation your life is in. When you are single and not planning on having a family, you could have a lower life insurance than a person who has a bigger family. In addition, it would also depend on how much you can afford and the plans that are available to you.
Whether you are a career person of planning on having a bigger family, you should always look at the pros and cons into buying a life insurance plan. In some cases, you or your spouse would not be working and would rather stay home and watch the kids; or either one of you would retire early and do volunteer work, these are just some of the cases you would have to reconsider into buying a life insurance plan. You would also have to consider if you would want to share the plan with your husband or wife. The main questions you should ask yourself are that if you have children? If you do, how many children do you have? Do you want them to be able to be present at college? What are their ages and are they working or have gone out of the nest? Do you at present at this time have a credit or do you rent your house or the place you are staying in? Do you have unresolved debt, loans or credit issues with a bank? These are just some basic question you would like to consider in getting a life insurance plan.
Another factor that you would want to consider is your personal debt. You also would like to retain sufficient coverage in order to pay back any unresolved personal liability that you may have in the past. This is particularly vital if you’ve had somebody co-sign on a finance for you as they would be completely accountable for settlement in the event of your death.
Basically, your life insurance plan would be used to support your family. In some websites or ads online or in the paper, they would ask if you would like your life insurance plan to be 5x, 10x, or even 15x your yearly salary. This would vary on the period that you want your family to be supported by the plan. If you are the generous type, then you would probably buy a higher plan.
However, if you would just want to leave a stable amount of money with your family using the plan, you could always use a life insurance calculator or simply ask a trusted financier to help you with regards to knowing which plan would be best for you. Obviously, you would need to know your annual expenses for you and your family which would be very important in getting the plan. In the end, people are insatiable and sometimes we do not know how much is enough. All we have to do is make sure that we don’t get caught up with finances and should always be happy with what we have.