Life insurance. It’s a tough subject to get around to. Nobody wants to think of a loved one passing away or wonder if your family will be able to survive if you pass away. When evaluating or re-evaluating your life insurance plan, there are definitely some things to consider. Nick Schneider is back in the Doctor’s Life Podcast studio this week with some advice on what to look for in your life insurance policy as well as what to consider to make sure you have the right coverage.
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First of all, your beneficiary does not care which type of insurance you own. They only want to make sure they are going to be ok if you are no longer here.
There are 3 main areas to consider when selecting the amount of death benefit:
1. Current Debt and Obligations
– student loans
– credit cards
– funeral cost
2. Special considerations for your children ( education and special needs)
– will they attend a 4 year public or private?
– Any other health or learning disabilities that would lead to consistent support needed for the children beyond college?
3. Ongoing income replacement to continue current lifestyle
– After debts are removed, how much money will you spouse need to keep the children in the school and area they have grown up in?
– Calculation if you need 100k of income annually this should be multiplied by 20. 2 million of insurance would consistently produce this amount of income for at least 20 years.