How much life insurance is enough

Life insurance is not something that most people know a lot about. It is rarely discussed, and certainly, it isn’t taught in school. If you ask ten people how much life insurance is enough, you would likely get ten different answers. One thing for sure, life insurance is not one size fits all. When it comes to how much life insurance is enough, having the help of a knowledgeable insurance agent makes the process much less intimidating. For residents of Hutchinson, KS, the DJ Kauffman Agency Inc. has the answers you are looking for. As independent agents, we can offer you products from some of the top carriers in the business. 

Experts suggest that you should have between seven and ten years of income in life insurance. If you are single without dependents, this may be more than you need, and if you have five children and a spouse, this may not be enough. So, how do you decide how much life insurance is enough? Firstly, you need to ask yourself some questions. 

  • Do I have anyone who is dependant on my income? This can be a spouse, aging parents, children, or anyone else who needs you to provide for them. How long will they be dependent? Do you have young children, and do you want to provide for their college education? 
  • Do you have debt? A mortgage, car payment, credit card debt, anything that might have to be paid by your survivors? 
  • Have you taken care of your final expenses? 
  • Do you want to leave a legacy to your children or grandchildren? 

The answer to these questions will help you determine how much life insurance is enough. When you are ready to discuss your life insurance needs, the team at DJ Kauffman Agency Inc. in Hutchinson, KS will be there for you. Give us a call or stop by and let us explain the life insurance options available and give you a free quote. 

The Basics of Life Insurance

Life insurance is a financial tool that can provide security for your family. Many new parents may be concerned about what will happen to their spouse and children if a parent dies. Life insurance provides that much-needed safety net. It can be used in many ways including paying off remaining debts and funeral expenses. Our team at DJ Kauffman Agency Inc. works with individuals and families throughout the Hutchinson, KS area to serve their insurance needs.

Life Insurance Options

Life insurance policies are available in two primary types: term life and whole life. Both types offer advantages in certain life situations. An important consideration is the impact of inflation and the estate taxes that will be incurred. This will affect the type and amount of coverage that you choose. Term life policies are active for a defined period of time. However, they can be renewed. While the premiums are lower than whole life insurance, the premium increases every time it is renewed. It’s important to note that term life policies do not build cash value. 

Whole life insurance policies stay active during the life of the policyholder. They do carry a higher premium but they also develop cash value. When needed, the policyholder can borrow against it.

There are many benefits to a good life insurance policy. Your children’s future education is assured. It can also be used to pay off a mortgage, as well as, final expenses. Some earmark certain funds for charitable purposes they support.

At DJ Kauffman Agency Inc. in Hutchinson, KS, our agents can talk with you about the advantages of different life insurance plans. They are ready to get you started on the path to protecting your family. Selecting a plan and policy amount requires some thought. Call us to get started today!