Matt Watson
From your income to your children’s future education, here’s what to consider when you buy life insurance.
Getting the Right Protection for Your Life
How much life insurance do I need? Is the life insurance I have through work enough? I bought life insurance a long time ago, do I need more now?
These are common questions people have about life insurance, and the answers are different for everyone. As an individual, you have your own unique needs and dreams for the future, and you have your own unique family situation.
Helen Lee, State Farm® agent in Buena Park, Calif., helps a lot of people with these kinds of questions, and she’s here to offer some good insights into how to figure out your unique life insurance needs.
What to Look At
Figuring out how much life insurance you might need starts with looking at what and who you want to protect, and that often depends on what life stage you’re in.
If you’re newly married or a young parent, your income may be what you primarily need to protect. So, if something happened to you, you could leave enough behind to help your spouse or family replace the lost income for a certain amount of time.
If your family is growing and you’ve purchased or upgraded your home, you may need to add additional coverage for some of your bigger assets.
If you’re going through a divorce, there are several factors to consider, especially if you have children.
If you’re nearing retirement, you may start thinking about what your spouse would need to live comfortably if they live longer than you.
Is My Current Coverage Enough?
Many people who have life insurance through work assume that will be plenty for their family to live on. But as Helen puts it, “Many people don’t do a needs analysis with their work coverage. They see the number and feel secure with it, but they’ve never sat down and looked at the numbers to see if they’re even in the ballpark.”
What If I Can’t Afford It?
So, what if you’ve done an analysis of your needs, only to find out the premium isn’t something you’re able to afford right now? Helen describes it as a balance, and an ever-evolving conversation. “When we calculate proper coverage, we balance their budget with their needs. Budget is very important, so we start with helping customers find a solution that makes the most sense for them based on what they feel they can afford, while still feeling secure in their protection.”
Learn More
For help figuring out your own life insurance needs, talk to your local State Farm agent today.