6 Things Life Insurance Needs to Pay for no comments
Posted at 5:48 am in Writing a Will
Stephen Sikes
If you have a family and have taken care of the important family insurance policies such as home, health and car insurance, there may be one you are still missing – life insurance.
If something were to happen to you, your family could end up in a very tough situation. Without the money you had been bringing in, they could lose the things you had all built together and have to struggle to survive.
Pull out a pen and paper and let’s get to work figuring out just how much life insurance you need to leave your family in a good place, were the worst to happen.
Funeral Expenses
What would the cost of funeral expenses be if you were to suddenly die? Don’t know? Well the average funeral costs somewhere in the area of $10,000. That is a lot of money to ask your family to be able to pay if something were to happen to you. This is the first expense you want to make sure will be covered by your life insurance policy.
House Payments
The next thing to think of is where your family will live if something were to happen to you. Whether you are renting or have a mortgage, the expense of keeping a roof over the family’s head is likely the biggest bill to pay every month. Do you want your family to face the threat of losing their home if something were to happen to you? If not, you need to add an appropriate amount to your life insurance policy to cover these expenses. Many who are paying a mortgage use the ‘mortgage payoff’ as the amount they will add to the policy.
Car Loans
Most families these days have at least two cars. Often one or both of these cars are being paid for through car loans. What if your family income was cut in half by you unexpectedly dying? How would your family be able to pay on those loans? Would they lose the car(s)? Adding enough to pay these bills to your life insurance total will keep that from happening.
Credit Cards
There are very few families who are not using credit cards to pay for a number of their bills. If your family is one of these, you need to make sure you have left enough money behind to pay off those debts so they do not get more deeply buried beneath them.
College Funds
Want your kids to go to college? If you’re not around money will be tight. Leaving behind enough to pay for those college classes will make sure they can get higher education.
Sustaining Money
Adjusting to the death of a spouse is difficult. If you were the breadwinner in the family this is even harder. You may want to add in some extra money to pay the regular bills while your family adjusts to your being gone.
If you have a family and have taken care of the important family insurance policies such as home, health and car insurance, there may be one you are still missing – life insurance.
If something were to happen to you, your family could end up in a very tough situation. Without the money you had been bringing in, they could lose the things you had all built together and have to struggle to survive.
Pull out a pen and paper and let’s get to work figuring out just how much life insurance you need to leave your family in a good place, were the worst to happen.
Funeral Expenses
What would the cost of funeral expenses be if you were to suddenly die? Don’t know? Well the average funeral costs somewhere in the area of $10,000. That is a lot of money to ask your family to be able to pay if something were to happen to you. This is the first expense you want to make sure will be covered by your life insurance policy.
House Payments
The next thing to think of is where your family will live if something were to happen to you. Whether you are renting or have a mortgage, the expense of keeping a roof over the family’s head is likely the biggest bill to pay every month. Do you want your family to face the threat of losing their home if something were to happen to you? If not, you need to add an appropriate amount to your life insurance policy to cover these expenses. Many who are paying a mortgage use the ‘mortgage payoff’ as the amount they will add to the policy.
Car Loans
Most families these days have at least two cars. Often one or both of these cars are being paid for through car loans. What if your family income was cut in half by you unexpectedly dying? How would your family be able to pay on those loans? Would they lose the car(s)? Adding enough to pay these bills to your life insurance total will keep that from happening.
Credit Cards
There are very few families who are not using credit cards to pay for a number of their bills. If your family is one of these, you need to make sure you have left enough money behind to pay off those debts so they do not get more deeply buried beneath them.
College Funds
Want your kids to go to college? If you’re not around money will be tight. Leaving behind enough to pay for those college classes will make sure they can get higher education.
Sustaining Money
Adjusting to the death of a spouse is difficult. If you were the breadwinner in the family this is even harder. You may want to add in some extra money to pay the regular bills while your family adjusts to your being gone.