Life insurance is one of those things you don’t like sitting and talking about, especially with your family. It means you are going to die someday. No one likes to talk about that. But if you are gone, who is going to provide the income to your family that you are providing right now? Statistics tell us that about 80% of Americans don’t have the life insurance they need to protect their families. This article explains what you need to know so that you are not one of those people.
Why Get Life Insurance?
Life insurance is not about you. It’s about protecting your family in the event that the unspeakable should happen. Your family is probably the most important aspect of your life. You would do anything for them. But what would happen to your family if you were no longer here? The last thing you would want is for your family to be thrown into financial chaos because the unexpected happened to you. If you are concerned about protecting your family in the case of your death, getting life insurance is a necessity, not an option. While it’s not easy to think or talk about, it’s your responsibility to ensure that your dependents have financial stability and peace of mind in the event of your passing. This is what life insurance is for.
How Much Do You Need?
Let’s say you are making $40,000 a year. Can your wife and family live the way they are living right now if there’s not another $40,000 coming in? That’s the question you need to ask yourself. Life insurance is cheap. If you’re in good health, you can get life insurance for next to nothing. At Veritas Insurance, we even have programs where you don’t have to give blood, step on a scale, fast, or pee in a cup. None of that! In twenty minutes you can get preferred rates.
Generally, you need 10 to 15 times your current income. Why this much? If you make $10,000 a year, for example, and you have 15 times your income in life insurance, that’s $150,000 dollars in life insurance. Your wife can invest that money with a good financial advisor. They will tell her to take 4-6% of that per year and live on it for the rest of her life. If you have 6% of $150,000 per year, you are going to end up with right about $9,000 every year. If you were making $10,000 a year, this is going to give your wife $9,000 dollars a year. According to historical results, she should be able to take that $9,000 a year, keep up with inflation, and not have to use any of that principal. She can keep on doing what she is doing. Whether she is working or staying home with the kids, your income will be replaced. That’s what life insurance is about: replacing lost income if someone dies. The same is true for your wife. If she dies, you need 15 times her annual income in life insurance.
Do Stay-At-Home Moms Need Life Insurance?
If your wife is a stay-at-home mom, she is worth a lot of money. She cooks, she cleans, she drives the kids everywhere. If something were to happen to her, it’s going to cost you a lot of money to have someone do all those things for your family. You need to sit down to talk to your wife and find out exactly how much life insurance would be required on her to replace either her income or the work she does in the house.
Get Life Insurance Coverage!
Life insurance premiums are not expensive. For example, if you are 25 years old and in good health, you can have a $100,000 ten-year term for less than $10 a month. However, most people do not have nearly enough life insurance. Only about 20% of the people in America actually have the life insurance that they need to protect their family. Make sure that you’re not one of them by getting the life insurance you need.
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Insurance can’t cover everything. Any insurance policy you get is going to have limitations. If something happened to your business, would you be able to get up and running