Who Needs Life Insurance?
Simply ask yourself, "What will happen if I die?"
That answer will help you determine how much life insurance you need. For example, if you have a lot of debt that your spouse would be stuck with if you died, then you need some life insurance. Even still, a couple with a double income and no children normally will not need much life insurance.
When you have kids, you need to take out a term-life insurance policy that is 10 times your annual take home pay. The point is to have enough money to replace the income of the deceased spouse.
This is even true for stay-at-home moms and dads. They provide economic benefits by doing the majority of the cooking, cleaning, shuttling the kids, so do not forget to take out some life insurance on stay-at-home parents.
Few people need insurance on their children. Life insurance is meant to protect an income stream that can disappear due to a death. That why parents should consider carrying it, because others are depending on their income.
You might take the money you would have paid in premiums for your child and park that in your emergency fund or put it in a mutual fund. That is a good way to help your child no matter what happens.
Labels: IRA, life insurance, money saving tip
Posted By: Joe on Monday, March 31, 2008
PermaLink | 0 comments | Click to Comment
Share this
0 Comments:
Post a Comment
<< Home