A question many people ask themselves when planning for the future is how much life insurance do I actually need? Several companies offer a basic life insurance to their employees but for many this doesn’t cover everything they need it for.
Life insurance is a lump sum payment that is provided to your listed beneficiaries after you are deceased. The purpose of life insurance is to help ensure that your loved ones don’t incur unexpected bills and expenses from you after you pass away. Some people, when debating on how much life insurance to get, only think of funeral expenses, and while this is certainly an important consideration, there are other things to consider as well. How much debt do you currently have that needs to be paid off? Do you have children who are attending college or university? How much annual after tax income will your family need to support themselves and how many years do they need this support?
If you have assets, these of course can be deducted from the total that you need to consider. Belmont Health & Wealth has provided a handy “Insurance Needs Analysis Tool” which you can find at http://gobelmont.ca/personal-savings-insurance/ . This is a great starting point for getting an idea of what you’ll need for the future. Please note: no calculation could ever replace the advice of a trusted advisor. Give Belmont Health & Wealth a call today and see what options are available for you!