How much MA life insurance do you really need?
Many consumers are really confused about how much life insurance that they really need. When researching the web there are so many conflicting answers for this one issue. This article will finally show what each person should factor in when figuring out how much life insurance they really need.
If a person is Single or married without children it is best to figure out how much insurance they will need by identifying their debt vs. savings. For instance, if you have own a house and have a mortgage it is best that you have an insurance policy that will cover the remaining balance on the mortgage. This is important so that if you die unexpectedly the person who is inheriting the property can own it free and clear without a mortgage. I know of a person who was single that unexpectedly passed away but had a one million dollar policy. This may be too much for the average person but he had his personal residence that he had a mortgage on, and some rental properties. Upon his unfortunate death his life insurance policy paid for his real estate portfolio and his mom was able to inherit his properties free and clear without any mortgage. Not only should mortgage be factored in but other debts should be factored in such as car loans, credit cards, personal loans, and other outstanding debts that you know that your saving s and retirement will not pay for. In most cases, the proceeds from the life insurance is tax free which means that the entire amount can be paid towards what you want to be paid off upon your death. I would definitely recommend a term MA life insurance policy for this because as time goes by your debt will be reduced and there will be no need to pay off these debts.
When a Family is involved in factoring in how much life insurance is needed it is important to identify your goals prior to purchasing life insurance. For instance, to receive a full analysis of how much insurance you need write down: what are your debts, how much will your spouse need per month to carry on the lifestyle, will your children’s college education need to be funded, and other final expenses. It is important to look at all of these factors when determining your needs. Even if you a spouse is a stay at home mom or dad they still will need a life insurance policy because you will have to factor in the extra costs of childcare until the children are at the age that it is not required. Factor in these debts with the savings, investments, and retirement funds that you have and this will show you how much you will need. Unfortunately, most people completely depended on their retirement funds to support their families and some have found that the retirement accounts have not performed as well as they have hoped. If they had purchased life insurance to cover their families they would found that the same funds that they purchased are still available today even in this volatile economy.
If a person is senior final expense insurance is recommended if they do not have any insurance. There is no medical exam just a few questions that need to be answered. This type of life insurance is used to cover a funeral and final expenses upon the time of death. Usually funds are dispersed to the family within 24 hours of the insurance carrier receiving the information from the funeral home.
The author is an independent insurance agent that sell life, final expense, and medicare supplemental insurance in MA, TX, and PA.