Each individual and family needs to determine the life insurance needs for their future. If you are the primary income earner in your house, you may need some substantial life insurance both through a group policy and a private policy that you maintain throughout your life to help support your loved ones if something happens to you.
If your loved ones are coping with your loss, life insurance provides an immediate asset to them to help make important financial decisions like paying for a child’s college education, or keeping the family home by paying off the mortgage. Most recommendations for how much life insurance you should carry depend on your goals and needs but start with considering basic things like burial expenses and a multiple of your income.
Life insurance can be beneficial for people of all ages because it can be used to replace income, pay off debt and provide for specific financial goals. Consider purchasing a minimum of 5 to 10 times your annual income while also adding in any other financial responsibilities you have within your family.
Calculating a number that would be enough to enable your loved ones to make these important decisions during a difficult time can make a world of difference and allow them to cover the most important financial costs based on the needs they are facing at that time. Life insurance inside trusts is another option when you work with a New Hampshire estate planning lawyer.
If you have more questions about how life insurance can work as part of your existing estate plan, schedule a consultation with a knowledgeable lawyer.