According to a recent study from InsuranceQuotes, 40 percent of Americans don’t have life insurance. Among those who didn’t have insurance, half said they feel like it’s not necessary.1 Even among those who have insurance, many don’t know if they have the correct amount.

Risk management is at the core of any financial plan. There may not be a bigger risk than the early death of a parent, loved one or financial provider. If you have young children or you support loved ones, your death could cause serious financial challenges for those who are most important to you. Life insurance helps you minimize that risk.

Now could be the right time to evaluate your coverage. The longer you wait, and the older you get, the more expensive insurance becomes. Not sure how much coverage you need? Below are a few tips to help you estimate your life insurance need. You also may want to meet with a financial professional to help you develop a life insurance protection strategy specifically for your needs and goals.


Estimate your need.

Life insurance is primarily meant to be a protection tool. It can serve other purposes, such as cash accumulation, but its primary benefit is a lump-sum, tax-free payout to your beneficiaries after you pass away. They can then use that money to cover expenses that may arise after your death.

Although thinking about your own death may not be a pleasant exercise, it’s important to consider what financial challenges your family may face after you pass away. They may have to pay for final expenses and medical bills. They could suffer financially with your paycheck gone. These are all costs that can be covered with a life insurance benefit.

Make a list of potential expenses and estimate their cost. The total figure should serve as a base amount for your life insurance protection need.


Add in long-term goals.

Life insurance can be used to cover expenses, but you also may want to use it to leave a legacy for your loved ones. For instance, you could leave money to pay for your child’s education. You could help your spouse pay off the mortgage or retire early. Maybe you want to leave assets for other important loved ones, such as siblings or parents.

Life insurance can be a great tool to help you leave a lasting and impactful legacy. As you determine your death benefit, be sure to consider ways in which you can help your loved ones improve their financial future.


Consider other possible costs.

Life insurance isn’t just for the family breadwinner. Even if you earn less than your spouse or don’t earn income from an outside job, you still may need life insurance protection. It’s likely that you make other, nonfinancial contributions to the household, such as caring for the children or managing the home.

If you pass away, your surviving spouse may need to hire someone to replace your contributions. Child care can be costly, as can home maintenance and other similar services. Estimate the replacement cost of your contributions and use that as a basis for determining your life insurance amount.

Ready to implement your life insurance protection strategy? Let’s talk about it. Contact us today at Spicer Wealth. We can help you analyze your needs and develop a plan. Let’s connect soon and start the conversation.




Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.

17600 – 2018/4/19