Life insurance policies are sometimes thought of as purchases made by people thinking about their golden years. While many people planning for retirement do become first-time life insurance customers, this valuable policy is important for people at all stages of life. When you make the decision to purchase life insurance in Baltimore your agent will ask you how much you want to purchase.
Determining How Much Life Insurance to Purchase
While you do not want to pay for more coverage than you need, it is even more important not to underestimate the amount of life insurance you will need. Here are some tips to help you determine how much coverage you will need:
- Think about funeral costs. Since life insurance will help cover the cost of your funeral, stating your wishes clearly in a document will help you assess how much money will be required.
- Consider business expenses. If you own a family business that depends on your financial management, then you should include a prudent amount of money in your insurance policy. This will help your survivors keep the business solvent.
- Factor in educational expenses. If your children have not finished college, make sure that you factor in the cost of education. Consider the cost of private school and supplementary educational courses, too.
- Think about your spouse’s retirement plans. If someone dies without having purchased a life insurance policy, the money used to cover those final expenses often comes from a spouse’s retirement account. Make sure that your spouse’s retirement savings remain untouched by purchasing a sufficient amount.