How to Assess Life Insurance Needs at Different Stages of Life

Posted on by agentinsure

At McCormick Insurance Inc. in Pembroke Pines, FL, we understand that a person’s needs change as they grow into different stages of life. Your needs in your 20s change when you get into your 30s, 40s, and older. Furthermore, your needs when you are married with no children drastically change when you become a family of 3, 4, or more.

So, we are here to help you assess how life insurance needs differ at various stages of life and how to calculate just how much coverage you should have to protect your family financially.

The following are a few factors that can greatly impact your life insurance needs:

  • Your age: Younger people typically need less insurance, but as their responsibilities and families grow, they need to change their life insurance coverage.
  • Your Family Status: Being single, married, raising children, or sending them off to college all these factors can affect the amount of life insurance you need to set your family up for success if you are no longer in the picture.
  • Your Income: Your income can be used to calculate your potential future earnings and decide how much life insurance is needed in your absence. If you change jobs, you may need to recalculate those figures.
  • Your Debt: The amount of life insurance you may need also depends on the amount you own for your mortgage, credit card debts, vehicle payments, and other loans.
  • Your Assets: Some assets cannot be quickly converted into cash, so it may be wise to consider how much money is in your savings and investment accounts.

When deciding what your survivors may need to live comfortably in your absence, it is good to assess what is required by analyzing the following:

  • Income, current and future for you and your surviving spouse
  • Burial expenses and immediate needs such as funeral expenses, mortgage payoff, and the repayment of debts
  • Education expenses such as college, wedding, retirement plans, and long-term care
  • Evaluate existing assets such as money and other funds your family may have, retirement funds, and insurance policies

Our Experts Can Help

When deciding how much life insurance is needed so your surviving loved ones can live comfortably is a burden that you shouldn’t carry alone. Let our agents at McCormick Insurance Inc. in Pembroke Pines, FL, help you make an informed decision and feel comfortable knowing that your family is protected, no matter your life stage. Call us today at (954) 602-5741.