Job Promotion? How About a Promotion for Your Life Insurance Policy?
So you’ve been promoted, congratulations! You’ve obviously worked hard and should be proud. Have you given any thought about what you are going to do with the additional income? Increase your 401k contribution? Buy a new car? A new home? How about a life insurance policy if you don’t already have one? You could also review your existing life insurance policy and perhaps purchase additional coverage. I know it’s not very exciting, but remember the reason you purchase life insurance isn’t for you, but for your loved ones.
Did you know that on average, you should have enough life insurance to replace five to seven years of your salary? You may need even more coverage depending on your current family situation. Do you have young children or significant debt? If the answers are yes, then you may want to increase the coverage amount to 10 times your salary. These are important factors to consider since the purpose of life insurance is to replace your income in the event of your death so that your family can maintain the lifestyle they are accustomed to.
There is no right or wrong answer to how much coverage you should have, that will depend on how much you can afford and what you need to cover when you pass away. The important thing to remember is that having some amount of life insurance coverage will help protect your loved ones from having to deal with undue financial burdens upon your death. Losing you will be hard enough, but adding financial strain to the mix can make the grieving process that much more difficult.
About the author: Lauri Pella has been in the life insurance business for over 29 years. She is a fitness enthusiast who actively supports foundations like the American Cancer Society, and the March of Dimes. Lauri would love the opportunity to help your family have a peace of mind, knowing they have the right life insurance coverage. You can contact Lauri at 1-800-651-1953 or LPella@Pivot.com.