September not only marks the beginning of fall, but it also happens to be Life Insurance Awareness Month. Life Insurance Awareness Month, or LIAM, is a national campaign that was created by Life Happens in 2004. The goal of the campaign is to promote the importance of having adequate life insurance coverage to the public.
Questions to Ask Yourself
It can be easy to underestimate the needs of your family. However, there are a few questions you can ask yourself to ensure that you are obtaining the appropriate amount of coverage.
If you didn’t make it home today, how much money would your family need to live on? Or, in other words, how much money would your family require to maintain their current standard of living indefinitely? You can look over your monthly bank statements and accurately determine how much you spend each month. A good rule of thumb is that your payout should be 7 to 10 times more than your income.
What assets do you have? Review your savings, bonds, stocks, real estate properties, precious objects or heirlooms, certificates of deposit, other investments like a 401(k), and other life insurance policies. Do a quick calculation of your assets minus your debts to get an estimate of how much life insurance you need. You might conclude that you do not need to replace all of your income.
How much debt do you have? It would be hard enough for your family to heal after your passing, and so you don’t want to leave them with the extra burden of your financial debts. It is important to take this seriously when deciding on your coverage. Include your mortgage in this calculation and consider the time it will take to pay off vehicle loans, credit cards, etc.
Have you thought about special circumstances? All families are different and there are certain financial situations that are exclusive to you. Examine the potential of taking on additional expenses such as funeral costs, tuition, care for a special needs child, hereditary health conditions and their costs, and any other relatives you are or could become financially responsible for. All of these things add up and should be worked into your final calculations.
To celebrate Life Insurance Awareness Month, you should dedicate time to looking at your current coverage and ask yourself these questions. Making sure that you and your family are prepared for the worst can take much of the worry out of tough scenarios. Preparation kills fear!
We hope that this information on Life Insurance Awareness Month is useful to you.
Empower Brokerage is dedicated to helping you make informed decisions about your health and finances. Whether it’s through webinar training, one-on-one calls, seminars, or marketing plans, we want you to be successful!
Give us a call at 888-539-1633 or leave a comment below if you have any questions.
Kayla is a graduate of Texas A&M University and joined the marketing team at Empower Brokerage in early 2021. She creates content for the company websites and assists with various marketing campaigns. LinkedIn Profile