Many things in life are personal and life insurance is one of them. Everyone has different needs and wants when it comes to how much life insurance they consider to be enough. Life insurance comes in two different types, whole life, and term life. Both of them offer a death benefit and have a place in financial planning. At Parker Preferred Insurance in McKinney, TX, we have the experience to help you to make one of the most important decisions of your life.
Enough is a vague word, what is enough for one person won’t be enough for another. What you consider enough may be too much for someone else. When it comes to life insurance enough is a relative thing. It relates to your need to provide for those who count on you. If you have a lower income, there will be a much smaller need since they count on less than if your income is in the upper six figures.
When you don’t have dependents, you need enough life insurance to take care of any debt you may have. Things like a car loan or credit card debt. You also want to make sure you have enough to pay for whatever final expenses may be incurred. If you have a home and a mortgage, that is a larger debt that requires a larger amount of life insurance.
Once you have dependents, your need for life insurance rises. If you have a spouse and children as a responsible parent you want to make sure they can stay in the home they love and not have to skip going to college. This means thinking ahead to the amount of income you would have earned until they are grown. Only you can decide how much life insurance is enough.
Call Parker Preferred Insurance in McKinney, TX to discuss your life insurance needs.