How Much Life Insurance Should Moms Have?


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Life insurance is not  just for dads, mothers should have it too!

Traditionally, the male half of the couple has been the primary income earner, and the one primarily responsible for tending to the financial matters of the family. All too often, this means that the wife and mother is left out of important financial decisions. For example, it is typically the husband and father who determines how much life insurance each family member has. And while you love him and trust him dearly, it’s not a good idea to leave the fate of your family entirely in his hands. The fact is, if something happens to him, you’re the one who’ll be running your home and raising the children. So take it upon yourself to ensure your future and that of your children by getting the right amount of life insurance.
How do you determine how much life insurance you should have? Standard formulas, for example, “ten times your annual income,” are quite common. The problem is, utilizing a rule of thumb is almost as silly as pulling a number out of thin air. Every family is unique. Two different couples may have the same income, but if one couple has one child, and the other couple has three, it is ridiculous to think they’d need the same amount of life insurance. So if the person providing you with life insurance uses a general formula or a cookie-cutter policy, take it as a sign that he or she may not really have your best interests in mind.
A better approach to ensuring you have the right amount of life insurance, and one commonly used by financial planners, is called the “capital needs analysis.” It is a complex calculation which factors in projected increases in the cost of living as well as well as current and future changes to family income and expenses. But you needn’t worry about the math; most insurance agents and financial planners have sophisticated software to make those calculations for you. Your job is to make decisions about your future and express them accurately to your financial planner. Likewise, your insurance provider should express an interest in your well-being, and ask you questions which will help determine your real life insurance need.

Read Related: 12 Reasons Why You Need a Will

Here are just some of the issues a financial planner should bring up when determining how much life insurance you need to protect your family:

  • Dying is expensive. If your husband or partner were to die today, how much money would you need for expenses related to his death? You’ll need cash to pay for the funeral and burial expenses. Would you need to pay to fly people in…

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