Individuals who are in the market for life insurance often wonder what level of financial protection they should secure for their families. However, even those who have existing policies may find that their life insurance needs change over time.
Typically, industry experts will advise people to buy a life insurance policy worth as much as five to 10 years of their annual salary. Of course, one’s individual needs can vary considerably depending on whether college tuition and care for aged relatives are also in the mix.
A recent report from Kiplinger.com advises consumers to increase their coverage if they get married, buy a new home or have a child. The financial news provider notes that people on the verge of retirement may also consider increasing their coverage to provide additional protection for their spouse.
Kiplinger advises individuals to consider final expenses, mortgages and income replacement when determining one’s life insurance needs.
Even those without a spouse or children may benefit from life insurance because of the flexible benefits it offers, for example, leaving behind charitable contributions.