Most people think, “Oh, all I’d need is enough to get my family by for just a little while. As a result, they usually have the $50,000 or so worth of insurance that’s part of their benefits package at work and feel that is more than enough. But since an unexpected tragedy affects people in different ways, you never know for sure what might happen after you are gone That’s why this is a decision, taking into account every tragic possibility, that must be discussed with the people who would be affected by such an event. All the questions must be asked. Do they feel comfortable knowing that they have enough money to get by for a year, or two, or eight? Many experts will tell you to purchase six to eight times your annual salary, but experts are not the ones who have to live your loved ones’ lives. Maybe in your situation you would rather know that everyone will be okay no matter what, even if no one is able ever to work again. Maybe you want your children to be provided for for ten years, rather than just eight. There is no magic formula. Each of us has our own financial what-if comfort level. The final decision is a balance of what makes everyone concerned feel secure—and how much you can realistically afford to pay for that security.
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