Do I Have Enough Life Insurance?
The people you love depend on you to answer this question. While there are several rules of thumb out there, such as 12 times income, this can be determined after a proper needs analysis. If your spouse has a career, then you may need less life insurance than someone whose spouse is a homemaker. Some people feel that they should have enough life insurance to cover all of their debt. This amount of coverage may be a good starting point, but we feel that for many this amount of coverage may not be enough. We encourage our clients to estimate income needs for survivors to determine the amount needed. Projected future expenses, such as college education, should also be addressed.
For many of our clients, a term life policy is suitable. However in some cases, such as for estate or charitable planning, some form of permanent life insurance may be appropriate.