Can you Pay The Bills from Heaven?

This may sound harsh but it is true. Why is it that we don’t think of dying? We don’t like to imagine our own death, and so we put off planning for it…until it is too late.

I was once introduced to a young couple; the husband was a new realtor and the wife a stay-at-home mom with a 9 month old baby. I spoke to them about life insurance and he said he would consider it and get back to me. Unfortunately one sunny afternoon in West Seattle the husband was involved in a motorcycle accident and was hit head on and died instantly at the scene. I am sure you know many stories like this. They should be your motivation to act. You need to have enough life insurance to support those you are going to leave behind.

I agree with Suze Ormond, “Should every parent have life insurance? You can’t afford ‘not’ to get it.”

What do you need to cover with your life insurance? Start with a calculation of at least 10 times your salary, more if you want to take care of your family for a longer period. Using a calculation of 20 times your salary would support the surviving family members for about 16 years at their current lifestyle, after inflation, according to the Insurance Information Institute.

In addition, add your other large expenses coming up to that amount. These could include college tuition; medical expenses if someone in your family has special needs, a chronic illness, or a medical condition. Or do you want your surviving spouse to never have to go back to work? Or would you like to provide a gift to a church or charity that is important to you?