Life insurance is not an option, but is a requirement. All of us needs to obtain a life insurance policy so we can guarantee that our family enjoy financial stability even after our death. The payout received from your life insurance policy will automatically go to your named beneficiaries- your spouse, children, or relatives- individuals who are depending on you for them to lead comfortable lives.
Your untimely demise is loss of income. If you purchase a life insurance policy however, money is guaranteed to be supplied to your family so they can still resume their life with financial security and stability.
If you want to know if your current life insurance policy can adequately cover your needs, here are three different time frames that you need to consider:
- Short-term expenses
These are the expenses that you will need to cover your funeral, medical, taxes, and estate settlement costs. Any debts such as your mortgage should also be included here.
- Living expenses
These expenses are also known as reoccurring expenses that are unavoidable no matter what you do. These are your food, clothing, shelter, rent, utilities, insurance, and vehicle expenses if you own a car.
- Long term expenses
Long-term expenses include funding for your children’s education and your retirement costs.
Once you have factored in these three time frames, you can then assess if your existing policy is more than enough to ensure stability for your beneficiaries. If you find out otherwise, you should then proceed with talking to your insurer for wider or more comprehensive coverage (then you can check out www.docoop.com).