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How much life insurance should you get?
This article is a courtesy of our partner Beneva*
Your coworkers, friends and family all have an opinion about what how much life insurance you should have and now you’re feeling uncertain. Who’s right? Here are a few things to keep in mind and help you decide.
Life insurance is essential if your loved ones depend on you for their livelihood or if you don’t want them to inherit your debts.
Should you die, your life insurance will allow your heirs to maintain a similar lifestyle to what they have been accustomed to and to carry on as before.
Situations vary from one household to another, and so does the amount of life insurance people may need. So how do you know how much is enough for you?
Make a list of your assets
Before deciding on how much life insurance you need, make a list of your assets: primary residence, cottage, land, boat, investments, pension fund, vehicles, artwork, jewelry, etc. Determine how much these things are worth and what you might get for them.
Sound hard to do? Ask a financial security advisor for help.
Identify all fixed expenses payable upon your death
Unless you’ve made prior arrangements, some expenses must be made upon your death, like funeral costs. Taxes on your income for the year and on your estate will also have to be paid.
Do you have a mortgage? The balance will have to be paid in full.
There’s also your line of credit and car loans to think about.
And remember to include your day-to-day expenses if you have dependents. In addition to the usual monthly expenses – like groceries, drugs, heating, electricity, clothing, rent or mortgage payments – you have to also include annual expenses like home insurance, auto insurance, municipal and school taxes, tuition, holidays and birthdays, etc.
Make your list as complete as possible, even if you think some expenses don’t have to be included. You can always remove any that don’t apply.
Choose your insurance product
With your lists in hand, talk to a financial security advisor to get the expertise you need to decide on a life insurance amount that corresponds to your circumstances. That way, you won’t be confused any longer by differing opinions.
| Regardless of your insurer, it is recommended that you analyze your situation with an advisor. To consult an SSQ Insurance advisor, call 1-866-225-5050. |
*Beneva designates Beneva Inc., Financial Services Firm.
Note: This blog post is provided for information purposes only. It is not a substitute for professional legal, financial or fiscal advice. For advice specific to your personal situation, always speak with your advisor. Beneva Inc. cannot be held responsible for any decision made as a result of reading this blog post.
Life, health and accident insurance, and investment and retirement products are offered by Beneva and are distributed by the financial security advisors of Beneva designates Beneva Inc., Financial Services Firm.
