How Can Life In­sur­ance Help You?

Calhoun Times - - BUSINESS NEWS -

Month. Of course, you prob­a­bly rec­og­nize, at least in a gen­eral sense, the im­por­tance of life in­sur­ance, but do you know the var­i­ous ways in which it can help you?

Life in­sur­ance can play a siz­able role in your abil­ity to achieve some i mpor­tant fi­nan­cial goals, such as th­ese:

- Help­ing your fam­ily main­tain its life­style – If you are mar­ried and have young chil­dren at home, you and your spouse may need to work. If you were no longer around and your earn­ings were gone, could your fam­ily still af­ford to live as they do now? Ad­e­quate life in­sur­ance can help them pre­serve their life­style.

- Help­ing your chil­dren con­tinue their ed­u­ca­tion – Even if you weren’t plan­ning to foot the en­tire bill for your chil­dren’s col­lege ed­u­ca­tion, you still might be do­ing what you can, such as con­tribut­ing to a 529 ed­u­ca­tion sav­ings plan. If your in­come was lost, could your fam­ily still af­ford to con­tinue th­ese con­tri­bu­tions? With enough life in­sur­ance, you can im­prove the chances that your chil­dren will at least get some fi­nan­cial help for col­lege or vo­ca­tional train­ing.

- Help­ing your sur­vivors pay off debts – Are all your debts paid off? If not, you could be leav­ing your fam­ily on the hook for some of them, such as credit cards and car loans – not to men­tion your mort­gage. Also, as un­com­fort­able as it may be to con­sider it, fu­neral and burial costs can eas­ily run into the thou­sands. The pro­ceeds of your life in­sur­ance pol­icy can help pay down debts, han­dle your fi­nal ex­penses – and re­lieve your fam­ily of costly bur­dens.

- Help­ing your spouse build re­sources for re­tire­ment – It’s al­most im­pos­si­ble for most of us to save too much for re­tire­ment. Your spouse may al­ready have some re­tire­ment ac­counts, such as a 401( k) and an IRA, but will th­ese be enough to sus­tain a long re­tire­ment? Through life in­sur­ance, you can po­ten­tially add sig­nif­i­cant amounts to your spouse’s re­tire­ment as­sets.

As we’ve seen, you can ac­com­plish a lot with life in­sur­ance. But how much do you need?

If you want the ap­pro­pri­ate amount of

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