Nothing protects you and your family like life insurance. In today’s uncertain world, life insurance provides a true safeguard and delivers invaluable peace of mind. However, according to a 2010 survey, a mere 44 percent of U.S. households report actually having life insurance. That’s a 50-year low. Do you have life insurance? And if you do have it, do you have enough? We’ve got some important information to help you determine how much life insurance is right for you.
First off, you should decide whether or not you need life insurance at all. If you have no dependents and enough money to cover your final expenses, chances are good you can do without coverage. If, however, you are like the majority of Americans who have dependents or want to make a charitable contribution, you need life insurance. When determining the amount of coverage you need, plan to buy enough to cover the income you generate for your dependents plus some additional to cover unforeseen expenses. You’ll also want to account for “hidden income” – the income that you receive through your employment but that is not included in your regular, gross wages. Hidden income can encompass a variety of items, including your employer’s subsidy of your health insurance premium, the matching contribution to your 401K plan, and many other company-provided or career-related perks.
At a minimum, most people will likely want to plan for roughly $360,000 plus an additional $15,000 for funeral expenses. Many experts recommend choosing an amount equal to a multiple of your current salary, perhaps 20 times before taxes. Keep in mind, however, that this formula doesn’t take into account things such as inflation and multiple sources of income including Social Security benefits.
At Insurance Hub, we believe everyone should be able to understand and afford quality life insurance coverage. Our team of agents and knowledgeable advisors are ready to assist you with all your life insurance needs. At Insurance Hub, we are committed to always putting our clients first. Whether you’re looking for life insurance or any other type of insurance, Insurance Hub is the one place to find it. For more information regarding life insurance and choosing the right amount of coverage for you and your family, visit Insurance Hub’s website today at www.insurancehubusa.com.