Q & A:
Q: How can I determine how much life insurance I should have?
A: Dear Planner:
When purchasing life insurance, you’ll want to make certain you have enough term life insurance to cover the expenses that your dependents will require until they are no longer dependents—or until you are certain you will have enough money saved up to cover their needs.
If you have children with special needs or a non-working spouse, they will require a longer period of care, compared to a family with two incomes and children who will achieve independence in their late 20s or early 30s, so keep that in mind when getting your policy.
If you plan on staying in your business well beyond the typical retirement age, if you are an absolutely indispensable part of your company’s success, or you will have estate taxes to cover upon your death, you should consider getting permanent life insurance. And you’ll want to obtain enough permanent coverage to fulfill those obligations.
To determine exactly how much life insurance you should have, consult with your Personal Family Lawyer® to get a full evaluation of your assets, liabilities, and family situation.