September is Life Insurance Awareness Month! Life Insurance Awareness Month, or LIAM, is a nationwide campaign founded by Life Happens in 2004. The purpose of the campaign is to inform the masses about the importance of obtaining adequate life insurance coverage and keep their loved ones protected.
Questions to Ask Yourself
It can be easy to underestimate what it would take to support your family if you were gone. However, there are some very important, quick, and simple questions that you can ask yourself to ensure that your life insurance coverage would rise to meet their needs in the wake of tragedy.
How much money does your family need to live? Surely you would want your family to maintain their current standard of living in the event of your sudden passing. Therefore, you may want to look over your monthly bank statements to determine how much is being spent. Once you have a total, it’s easier to know what kind of coverage you need. And always remember that a life insurance payout should be about 7 to 10 times your income.
What are your assets? Looking over your assets, such as your savings, stocks, bonds, 401(k), and additional life insurance policies will help you decide on coverage. You can take your assets and subtract your debts to approximate how much insurance you will need to cover the gap. You may find out that you don’t need to replace all your income, as well.
What are your debts? Life insurance is meant to cover your family financially, so it’s assumed that you would hate to leave them with your outstanding debts. You should take into account the debt you have, what the total of those debts is, and make sure it will be covered with the appropriate policy. A mortgage should be included in this calculation, as well as the time it will take to pay off credit cards, car loans, etc.
Does your family have any special circumstances? Everyone lives in unique circumstances, and your financial responsibilities may include more than just the mortgage and usual debts. You may have to factor in funeral costs, tuition payments, care for a special needs child, extra care for an elderly relative, and so on. All of these expenses should be considered when determining your coverage amount.
If you want to celebrate Life Insurance Awareness Month, you can start by looking over your coverage and asking yourself these important questions. We want to make sure that your family is taken care of— you should too!
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We hope that this information on Life Insurance Awareness Month is helpful for you.
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