Life insurance is an essential financial product that can give peace of mind and options to your loved ones if something happens to you. While you certainly hope that your family members never need to turn to life insurance because of your unexpected passing, this can provide replacement income, educational support, and help to pay off debts in an otherwise very difficult time.
Many people start by taking simple numbers, such as multiplying their annual income times 5 or 10. While this is a good starting point, it often doesn’t encapsulate everything you can accomplish with life insurance. For example, life insurance is actually part of your estate plan as well.
Your assets may not provide enough sufficient support for your loved ones, and life insurance is an excellent way to close the gap. Beyond thinking about the basics of replacing your income, are there other things you’d wish to provide to your spouse or your family members through the purchase of a life insurance policy?
These life insurance proceeds, for example, could be used to help pay off a mortgage, eliminate debts for the family, or even to provide for college education for your loved ones. These additional concerns should all be included in your calculation of the right life insurance policy value. Different life insurance companies will offer various quotes available to you, but you’ll also want to consult with your estate planning professional to discuss a face amount on your life insurance policy that would help supplement or close the gap on your existing estate plans. A knowledgeable estate planning attorney in MI can be a very helpful asset in navigating this process.