Do You Have Enough Insurance?
I do not like talking about death. I do not know many people that I do. But, I am not deaf to the fact that we are all going to die. Every single one of us. At this point, we all know that life insurance is important and hopefully you have taken the appropriate steps to protect your family. But, is it enough? Is your policy enough to cover your debts and provide a comfortable life for those you leave behind?
I carry an insurance policy equal to ten times my annual income. With an income of $50,000 per year, this would mean a person should obtain a $500,000 policy. If I pass away while my children are still in the household, I want my wife to be able to focus on raising them without having to worry about replacing my income.
With that being said, I also carry no debts. My home, vehicles, and school loans are paid off. I do not need life insurance in order to repay these debts. If you do have debts, you should consider these when deciding how much insurance you need.
The total amount of insurance that you require to secure your family should not break the bank. For a healthy 30 year old male who does not use tobacco products, a $500,000 policy would cost about $25 a month in term life insurance. For a healthy 30 year old female, the same coverage would cost about $20 a month. That is really cheap for such great coverage.
My personal goal is to become self-insured. If you are able to become debt-free and invest wisely, you will eventually have enough money that your need for life insurance will diminish greatly. Think about it. Suppose you die, leaving behind no debts and more than $1,000,000. You have probably become self-insured.
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