Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
Video Transcript: Today's question is, "How much life insurance is considered enough?"
Well, I definitely want to cover all my indebtedness: mortgages, credit card, auto, home, all my debts that I may incur. I also want to look at future obligations; maybe my children's college education, my retirement or replacing my income if I'm not there so that my spouse or business partners or beneficiaries are not saddled without any income coming in that I used to generate. So it's really important.
How much do I need? I want to try to buy what I need to cover all those areas and then maybe a little bit more in case I have charitable intent. A lot of people have big hearts but small wallets and sometimes I add that on because people want to be able to give something in case something happens to them.
Well, that's our consumer question for today. If you have any questions, just send them to www.insurancelibrary.com
If you were to cover every contingency of life with life insurance, you probably could not afford that much. Life insurance is a wonderful resource for the "what if's" of life, but the "what if's" can be endless.
What if you died leaving your family without your income.
What if before you died, you used up all your savings on doctor bills.
Then, what if your spouse died shortly after you.
What if the person you designated to care for your children, had just lost their job.
What if....
No one can have enough life insurance to cover every possible tragedy. But you can have enough life insurance to give your loved ones a chance.
Providing them with enough income to give them time to adjust to life without you, without having to worry about getting a new job (or adding a second job to the one they already have), is a good place to start. Giving them enough to live on until your children are grown, or for 10 years, is also a reasonable amount.
.JPG){kind=avatar}
Well, I definitely want to cover all my indebtedness: mortgages, credit card, auto, home, all my debts that I may incur. I also want to look at future obligations; maybe my children's college education, my retirement or replacing my income if I'm not there so that my spouse or business partners or beneficiaries are not saddled without any income coming in that I used to generate. So it's really important.
How much do I need? I want to try to buy what I need to cover all those areas and then maybe a little bit more in case I have charitable intent. A lot of people have big hearts but small wallets and sometimes I add that on because people want to be able to give something in case something happens to them.
Well, that's our consumer question for today. If you have any questions, just send them to www.insurancelibrary.com
What if you died leaving your family without your income.
What if before you died, you used up all your savings on doctor bills.
Then, what if your spouse died shortly after you.
What if the person you designated to care for your children, had just lost their job.
What if....
No one can have enough life insurance to cover every possible tragedy. But you can have enough life insurance to give your loved ones a chance.
Providing them with enough income to give them time to adjust to life without you, without having to worry about getting a new job (or adding a second job to the one they already have), is a good place to start. Giving them enough to live on until your children are grown, or for 10 years, is also a reasonable amount.