Life insurance worth 10 times your income often isn't enough - Business Insider

policy that's worth 10 times your income. As a financial adviser, however, I think that for most people, 10 times their income isn't enough.is meant to replace your income if you die, but you may also want to factor in large future expenses like college tuition, a mortgage, or other family obligations that could arise.

I've had life insurance coverage in place since my wife and I had our first child, but I've added to our coverage several times as our family has grown. These days, I have around $2.5 million in term life insurance coverage for my wife and kids, which is probably more than they could ever need if I should suddenly pass away.

There are a myriad of reasons why 10 times your income — or $100,000 in coverage for every $10,000 in salary you earn each year — may not even be close to enough.Consider your income — and your expenses, toois mostly intended to replace your income once you're gone, there's a lot more to think about other than the size of your paycheck. You also need to consider how much debt your family has, including how they might pay it off if you were to pass away before your time.

It's highly possible your spouse will need to take some time off to grieve, and it's also possible they'll want to cut down on work hours or even stop working all together once they face life alone — especially if you have kids. Having plenty of life insurance can help your family out if your spouse or partner gets sick and cannot work, or even if one of your kids winds up requiring expensive surgery or priceyYou can plan for a lot, but you just can't plan for everything. Life insurance can be there to cover any surprise expenses your family might face, no matter what they are.Buying 10 times your income in life insurance may be common wisdom, but I tend to believe this advice is outdated.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

10 stock picks to buy for huge 4Q earnings season gains: Goldman Sachs - Business InsiderGoldman Sachs crunched 35,000 earnings releases — and concluded these 10 stocks are your best bets for huge gains this season Would never trust these guys with my money.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Why I bought a $500,000 life insurance policy at age 25 - Business InsiderAfter becoming a dad and buying his first home, the author knew he had to put protections in place for his family, and life insurance was a key step. sbusisoml
Source: BusinessInsider - 🏆 729. / 51 Read more »

I pay $22.50 monthly for $500,000 of life insurance from Bestow - Business InsiderI did some research and discovered Bestow, an online term life insurance company that advertises affordable life insurance in about five minutes.
Source: BusinessInsider - 🏆 729. / 51 Read more »

The life of Singapore's richest man: from welder to hotpot billionaire - Business InsiderZhang Yong started his famous chain after visiting a local hotpot restaurant for the first time as a young adult and having a terrible meal. One day I will be on Forbes By COMMODIFYING. Look for it and you will see it. cryptotheoriez Hello, Friend . We buy paxful accounts with 100-10000rep, if you got accounts to sell, contact me on WhatsApp :+8615530353171
Source: BusinessInsider - 🏆 729. / 51 Read more »