Jeff Rose is at it again. This time, PF bloggers unite to raise awareness about life insurance.
A few months ago, Jeff Rose encouraged a movement to raise awareness about the Roth IRA. Now, he's at it again, thanks to the news that about 35 million households lack life insurance. This is a Big Deal. Because life insurance can mean the difference between your family experiencing severe financial hardship after your death, or your family recovering financially and being able to move on.
Do You Have Adequate Life Insurance?
Jeff Rose has asked PF bloggers to talk about the importance of life insurance, and share personal stories about what life insurance means to them. Life insurance is what gives me peace of mind when I think of the future for my husband and son if something should happen to me.
Even if you have life insurance, it's important to double check to make sure you have adequate life insurance coverage. There is no one set way to decide what your number is. There are plenty of rules of thumb, though. Some say to multiply your income by 10, and others say 7. We actually just looked at our likely expenses for the following years, and then used that as a guide, making sure debt (including mortgage) could be paid off in the event of death. Additionally, there would be some left over to help my son with college.
There are two main things you need to consider as you look for life insurance coverage:
- How much you need
- How long you should be covered for
When we bought life insurance coverage at first, we were talked into whole life insurance policies for my husband and for myself. This probably not something that I would have done had we been a little older and a little more informed. But, we have the whole life policies anyway. Since then, though, I've increased the coverage on my life, since my income has grown to a point that my family really needs me to have better coverage.
I bought a term life policy to augment the whole life policy bought years ago. However, I wanted to make sure that the term life policy at least got us to the point where my son would be out of the house and (hopefully) financially independent — and my husband and I would be almost to retirement. There is a 30 year term on my second policy, and I feel much better about that situation. We still haven't bought term life for my husband, though. But when he gets a full-time job, we'll consider it.
Life insurance is meant for your family. It's about making sure they are taken care of in the event that something happens to you. It's been vital for my peace of mind in recent years, since I know that my family will be taken care of in the event of the unthinkable.
Do you have adequate life insurance? Are you ready to get life insurance?