By Scott McConkey, writer at Cincinnati Insurance Company
Pondering life insurance can swiftly flood your mind with questions. How much do I need? What does life insurance do? How much will it cost? Where do I begin? Life isn’t always easy, but life insurance can be. Spelling out L – I – F – E uncovers our hidden path to answer some of the most common questions.
Liabilities – Pay off outstanding financial obligations with the policy proceeds. Think about any debts you have, including items such as your monthly mortgage and car loans. List these items and the balances due.
Income – Use the benefits from life insurance as an income replacement vehicle. Consider how much income would be needed and how long it should last for your surviving family members to maintain their current lifestyle.
Final expenses – Plan ahead using life insurance to cover your final expenses. Even the most basic funeral service and burial or cremation may cost several thousand dollars. Additional services or features add to these costs.
Education – Make allocations to fund education needs for your loved ones. List your family members and their plans. Within a few minutes, you can search average costs based on the type of educational institution and degree.
Although purchasing life insurance requires careful planning, the process need not be overwhelming. By performing this simple exercise, you can quickly get an idea of what life insurance can do and how much you may need. Your local independent insurance professional can guide you.
Best of all, having life insurance in place provides peace of mind. Then, life truly is easier.
Consider this resource to calculate your Life Insurance Needs provided by Life Happens:
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Neither The Cincinnati Life Insurance Company nor its affiliates or representatives offer tax or legal advice. Consult with your tax adviser or attorney about your specific situation. For policy service and additional information, speak to an independent agent representing The Cincinnati Life Insurance Company. For a complete statement of coverages and exclusions, please see the policy contract. All applicants are subject to underwriting approval. Products and riders available in most states.
If you need assistance with your life insurance planning, please contact us today! The reason we chose to be an Independent Insurance Agency is so we can provide you with multiple options. We recognize that everyone's situation is different and the ability to contact multiple insurance carriers helps us tailor a policy specifically for you. Our team is waiting to provide expert guidance and advice.