I previously introduced you to Jay Dworsky, a guest blogger who will be covering financial topics for Unique Estate Law. We will be featuring Jay in our new Financial Friday series: each Friday we will be bring you Jay’s expertise on financial issue that affect your unique family. Jay continues his series on life insurance considerations for unique families with a post on questions to as in determining your life insurance needs.
How much life insurance do you need?
Your life insurance needs will depend on a number of factors, including the size of your family, the nature of your financial obligations, your career stage, and your goals. For example, when you’re young, you may not have a great need for life insurance. However, as you take on more responsibilities and your family grows, your need for life insurance increases.
Here are some questions that can help you start thinking about the amount of life insurance you need:
What immediate financial expenses (e.g., debt repayment, funeral expenses) would your family face upon your death?
How much of your salary is devoted to current expenses and future needs?
How long would your dependents need support if you were to die tomorrow?
How much money would you want to leave for special situations upon your death, such as funding your children’s education, gifts to charities, or an inheritance for your children?
What other assets or insurance policies do you have?
These are just a few questions to get you started thinking about your life insurance needs. My next few posts will discuss different types of life insurance and why it can be critical for non-traditional families.
photo credit: amypalko