Do You Have Enough Life Insurance?

Choosing the right amount of life insurance can help to keep your dependents financially protected when you are gone.

Life Insurance TX

Finding the right amount of life insurance does not have to be a difficult process. As a general rule of thumb, your life insurance policy should be enough to replace your income, when combined with other sources of income, as well as offset any extra expenses your dependents may incur when you are gone.

When deciding how much life insurance you need, you should also consider your “hidden income.” Hidden income is income that you get from your employer, but is not part of your normal wages. This can include payments such as: your employer’s contribution to your 401(k), their subsidy of your health insurance costs, or any other financial perks that they provide.

You will also want to make sure that your life insurance policy is able to cover expenses that may arise when you are gone. This can include taxes, funeral expenses, and administrative costs that are associated with passing your estate to your heirs. At the very minimum, this amount should be $15,000.

If you have a life insurance plan through your employer, some other association, or even a vested pension benefit that has a death component, you may think that you have enough coverage. While these sources may provide some income for your dependents, they will generally not provide enough. You should not rely on a life insurance plan that you are getting from your current employer because you may switch jobs before you pass away. Choosing your own life insurance plan can help give you the coverage that your loved ones need.

For help finding the right amount of life insurance to meet your specific needs, contact the Texas independent insurance professionals at VGW Walker Insurance. We will work closely with you to make sure that you have the peace of mind that you and your family deserve with the right amount of coverage.