Plan Ahead to Ensure Your Family Benefits From Your Life Insurance Policy

<img src="https://dcr-apis.s3.us-east-2.amazonaws.com/wp_contents/uploads/DCR-ADMIN/Article_Webp/Ruth.webp" alt="undefined" style="height: ;width: "/> Originally written by Ruth Z. Barron of State Farm Insurance If your family depends on you for financial support, it’s important to consider who will provide for them if you’re unable to do so. For many individuals, life insurance is part of this planning process, but how do you know how much life insurance you should carry? Before you make a decision, consider the following tips. Know the difference between term life insurance and whole life insurance. Term life insurance offers coverage for a limited amount of time. You’re responsible for paying a premium until the end of the specific term, and then you may or may not be able to renew the coverage. If you’re able to renew the coverage, the average premium may be higher because you’re older than when you first took out the policy. Whole life insurance is permanent (as long as you pay your premiums) and has a cash value that increases over time (it also gains interest). It offers a premium that’s guaranteed for life, so you’ll never see a premium increase. However, sometimes whole life insurance policies are too expensive for some people. Plan ahead to cover final expenses. The average burial in the United States costs between $8,000 and $10,000, which can leave an enormous financial burden on family members. Having a life insurance policy in place will help cover these and other final expenses. Think of life insurance as income replacement. If you’re the sole provider for your family, you’ll want to purchase more life insurance. If you and your partner are both employed, you may be able to carry less life insurance. Because life insurance is essentially a future substitute for your income, be sure to factor in: <ul> <li>Your partner’s age and annual income</li> <li>Your partner’s desired retirement age</li> <li>Your children’s ages (expenses will be larger for every year they are under 18)</li> <li>Your children’s expected expenses (college, medical, child care)</li> <li>Your remaining mortgage balance</li> <li>Other debts (credit card, consumer)</li> <li>Desired annual income needs</li> <li>Number of years income is needed </li> </ul> <a href="https://www.diamondcertified.org/" target="_self">Use Diamond Certified Resource to find top rated companies</a> Local, Top Rated Diamond Certified Companies Related to Your Topic <a href="https://www.diamondcertified.org/santa-clara-insurance-health-employee-benefits/" target="_self">Santa Clara County Health & Employee Benefits Insurance Companies</a> <a href="https://www.diamondcertified.org/san-mateo-insurance-health-employee-benefits/" target="_self">San Mateo County Health & Employee Benefits Insurance Companies</a> <a href="https://www.diamondcertified.org/san-francisco-insurance-health-employee-benefits/" target="_self">San Francisco Health & Employee Benefits Insurance Companies</a> <a href="https://www.diamondcertified.org/insurance-health-employee-benefits/ca/monterey-county/" target="_self">Monterey County Health & Employee Benefits Insurance Companies</a> <a href="https://www.diamondcertified.org/alameda-insurance-health-employee-benefits/" target="_self">Alameda County Health & Employee Benefits Insurance Companies</a> Related Articles <a href="https://www.diamondcertified.org/Guide/insurance/" target="_self">The Essential Guide to Insurance Services</a> <a href="https://www.diamondcertified.org/find-expert-advice/" target="_self">Get Expert Advice From Owners of Top Rated Local Companies</a> <a href="https://www.diamondcertified.org/membership/" target="_self">Become a Diamond Certified Preferred Member (Always Free)</a>