There's no doubt about it: Everyone needs a life insurance policy. Yes, even young healthy people, with no dependents, need at least a basic policy that will cover final expenses. But as we all know, our coverage needs increase dramatically as our lives become more complicated. You want to ensure that your dependents would be financially safe and comfortable in the event that something happens to you, and you might also have other goals that you want to accomplish with a life insurance policy.
So, as we grow older, earn more money, own more property, and have more dependents... Our life insurance needs also grow. How much coverage do you really need, at this point? Even if you purchased a policy just a few years ago, your needs might have changed in the meantime.
That's why a needs analysis has become so important. We use a formula to determine how much life insurance, and which type of policy, will best protect your family and help you accomplish your goals. Then, we repeat this process every few years, to ensure that you maintain the amount of coverage that is right for you.
Your life insurance policy needs to address a variety of needs, such as:
Burial and other final expenses
Unpaid debts – mortgage, credit cards, loans, and so on
Loss of your income – how much do your dependents need to maintain their lifestyles?
Children – if you have younger children, your surviving spouse might need help caring for them
College tuition – you might wish to ensure that your children can achieve a higher education
Legacy – you might hope to leave money to children, grandchildren, or even a special charity
Other financial goals – there are many more objectives we can accomplish with the right insurance policy
These are just some of the main points that your needs analysis should address. Depending upon your unique situation, you might have other goals that we should discuss.
It can be tempting to just sign up for the first policy that sounds “right” or “large enough”, but without a need analysis it's difficult to achieve true peace of mind. Plus, life insurance policies can vary greatly, offering extra features that can benefit you in a variety of situations. Call us to schedule an appointment, and we'll help you assess your true needs and then match those with the right policy.