- What do I need to consider for life insurance planning?
- November 27, 2013
The Insurance Information Institute (III), an organization that provides insurance information, is offering tips for consumers to take into consideration while planning for their future life insurance needs.
According to the III, a life insurance policy should be sufficient enough to replace the income a policyholder generates for dependents, while also potentially meeting any other financial needs. For example, the institute points out that after the death of a family member, survivors may want to relocate, or a surviving spouse may need to go back to school to be able to generate more income to support the family.
The III also cites the following scenarios to consider:
– Surviving spouses may need sufficient benefits to provide them with an income until they become eligible for Social Security.
– Some policyholders may want to carry enough coverage to fully pay off their mortgage in the event of their death to provide further financial stability.
– Policyholders may want to factor in the cost of dependents’ future educational needs when deciding the right amount of life insurance to carry.
The III also advises consumers not to forget “hidden income” when calculating life insurance needs, which can come in the form of employer contributions to health insurance policies as well as 401(k) plans.
The Washington State Department of Financial Institutions also provides tips on how to organize one’s financial life to ensure all needs are being met in preparation for any future situations.
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