Do You Have Enough Life Insurance Coverage?
The amount of life insurance you need will depend on your personal circumstances and your
final wishes. You may want to leave a charitable bequest, cover final expenses, provide for a
child’s education, or leave a financial cushion for family while they grieve and adjust to life
without you. There are multiple types of policies from which to choose.
Calculations
Insurance companies recommend multiplying your income by 10 to arrive at the amount of life
insurance you should purchase, then add $100,000 per child for college costs. While there’s no
single answer to how much you need, the amount should cover your current and future needs.
Another method is to add up the amounts of debt you want to cover, then subtract assets that
could be turned into cash. If in doubt, speak with a life insurance specialist.
Financial Support
The loss of a loved one is a traumatic experience. Many people must immediately return to
work with little or no time to grieve their loss. An insurance policy can provide breathing space
and financial support for your family. Your partner can also use the proceeds from insurance
toward their retirement savings.
Debts
You may have a mortgage, new vehicle or credit card debt. A sufficient amount of insurance can
provide the funds to pay off those debts so loved ones don’t have to fear losing their home,
transportation, or filing bankruptcy due to large credit card balances. You may not think of a
funeral or burial as a debt, but final expenses can quickly add up. You can also choose only
enough coverage to pay for your funeral and burial expenses.
Charities and Scholarships
A life insurance policy can be used to leave money to charitable organizations that you support.
The funds can also be used to establish a scholarship if you wish.
For more information about how The Sena Group can help you with any
of your insurance needs, please contact us at 561-391-4661.
We can be found on Social Media at the following links.
The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487
