If you’re like most Americans, you may have some life insurance coverage. But is some life insurance enough life insurance?
Experts recommend coverage equal to 10 times your annual income.1 If you earn $35,000 a year, your estimated life insurance coverage need is $350,000. That may seem like a lot of money at first, but think of it this way. Your income provides for essentials – home, car(s), food, clothing, healthcare, retirement savings, paying off loans – and non-essentials like entertainment and travel.
Consider what would happen if your income suddenly stopped in the case of your unexpected death? How would your family meet these ongoing financial needs?
During the emotional struggle your family would face in losing a loved one, the financial strain from the loss of your income shouldn’t have to add to the stress. Life insurance helps ensure the people you care about will be provided for financially, even if you’re not there to care for them yourself.2
Determining how much life insurance is enough depends on your unique combination of essentials and luxuries. The Life Insurance Needs calculator on www.FBFS.com can give you a general sense of your coverage needs, and your Farm Bureau agent can help you select a life insurance policy that fits your specific situation. There are a number of life insurance options available to fit nearly every budget, every schedule and every need – no matter how big or small it may seem. Contact your Farm Bureau agent today to be sure your life insurance coverage is enough life insurance coverage.
1Life and Health Insurance Foundation, www.lifehappens.org, Life Insurance Reality Check: Do You Have Enough, 2010.
2Life and Health Insurance Foundation, www.life-line.org, Who Needs Life Insurance?, visited June 13, 2011.
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