In most cases, if you have no dependents and have enough money to pay your final expenses, you don\u2019t need any life insurance.<\/p>\n
If you want to create an inheritance or make a charitable contribution, buy enough life insurance to achieve those goals.<\/p>\n
If you have dependents, buy enough life insurance so that, when combined with other sources of income, it will replace the income you now generate for them, plus enough to offset any additional expenses they will incur to replace services you. Also, your family might need extra money to make some changes after you die. For example, they may want to relocate, or your spouse may need to go back to school to be in a better position to help support the family.<\/p>\n
You should also plan to replace \u201chidden income\u201d that would be lost at death. Hidden income is income that you receive through your employment but that isn\u2019t part of your gross wages. It includes things like your employer\u2019s subsidy of your health insurance premium, the matching contribution to your 401(k) plan, and many other \u201cperks,\u201d large and small. This is an often-overlooked insurance need: the cost of replacing just your health insurance and retirement contributions could be the equivalent of $2,000 per month or more.<\/p>\n
Of course, you should also plan for expenses that arise at death. These include the funeral costs, taxes and administrative costs associated with \u201cwinding up\u201d an estate and passing property to heirs. At a minimum, plan for $15,000.<\/p>\n","protected":false},"excerpt":{"rendered":"
In most cases, if you have no dependents and have enough money to pay your final expenses, you don\u2019t need any life insurance. If you want to create an inheritance or make a charitable contribution, buy enough life insurance to achieve those goals. If you have dependents, buy enough life insurance so that, when combined […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-824","post","type-post","status-publish","format-standard","hentry","category-insurance"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t