Matching Your Life Insurance to Your Phase of Life
As your life evolves, so do your life insurance needs. There’s no one “right” kind of life insurance to buy at a certain age; we can’t tell you what...
“Do I really need life insurance?” Financial advisors hear this question from clients all the time. A life insurance premium is yet one more regular expense that eats into your savings, and you may never see any benefit from your policy during your lifetime. If you’re looking to save money, your life insurance might be one of the places you consider making cuts.
We wish we could give you a definitive answer about whether you can afford to go without life insurance. But like so many of the financial questions that come up for our clients, the answer really varies from person to person. Having life insurance is primarily about providing financial support for the loved ones who outlive you. Whether or not you need life insurance to achieve that goal depends on your unique circumstances.
You would probably feel more secure having life insurance if:
This is another of those common life insurance questions that doesn’t have a definitive answer. How much life insurance you need depends on a mix of factors, including what stage of life you’re in. A young professional may buy their first policy when they get married, then reevaluate their needs when they have kids and change their policy to secure more coverage.
If you buy life insurance with the intention of covering your family’s expenses, the scope of those expenses matters too. How much money would it take to replace your income? How much debt do you have? How many people are you providing for? Do you want to get enough life insurance to cover future educational expenses for your kids? These are just some of the things we might talk about when helping clients think about how much life insurance they need.
Making decisions about what kind of life insurance policy you want, and how much coverage you need, may be part of a larger conversation around estate planning. Even if you already have life insurance, it’s a good idea to reassess your coverage needs as you move through different phases of life.
Whatever financial goals you have for your family’s future, Sachetta Callahan wants to help you meet them. We’re here to advise you on life insurance and answer any questions you have about creating financial security for your loved ones. Contact me today!
Joseph Sachetta, CFP®, CPA/PFS, MBA, MST, For over 40 years, Joe has worked in finance and accounting. He is a Certified Financial Planner, and a Certified Public Accountant. Joe’s passion lies with helping his clients strike a balance between living for today and saving for tomorrow.
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