5 steps to make sure your family is protected financially

Have you ever thought about what would happen to your family if something for you? We all have at one time or another, even if it was in the form of a note of frantic mental love sent to family members in case of bad air turbulence. But the desire to protect your family financially does not have to turn to worry if you follow these steps.

1. Take a look at that financial security means for you . Just as "rich" means different things to different people, so is financial security. Start by asking what would happen if the primary breadwinner dies prematurely (could you or your spouse or partner). You want your loved ones will be financially OK, but what it means to have a sufficient income ... for a lifetime? ... Not need to move out of your home and neighborhood? ... Enough money for your spouse or partner for the transition to a job if one parent stays at home? ... To provide for your children to college or maybe just a part and have to pay the rest? Once you have created, you can move to ensure that a plan is in place.

2. Determine needs over wants. They are not the same. You may safety 100% provide financial want your spouse for their lifetime and your children to college, but can you afford it? Most of us have no savings to achieve this, which is where life insurance comes in. You'll want enough money or death benefit if invested to rate current market (2% -4%) you can generate your (or) income of your spouse missing. This means you may need more life insurance than in the past. Before, the invested proceeds of $ 500,000 life insurance benefits would be replaced, a / Year $ 50,000 salary. Now, you might need $ 1 million of coverage to achieve the same goal.

3. Look at the full picture. This is not only life insurance that is just a piece of the formula. You need to look at all of your assets such as money in the pension, your benefits programs, investments you may have, that money your family would be to get social security, life insurance that you already have in place, etc.

Moreover, people often have large families to care for the economic requirements which may be established in a divorce decree. Or they may have special needs children who will never be able to work. In this situation, a trust must be established, funded by assets or death benefits to create an income stream for as long as they live. In addition, many of us have either adult children or our elderly parents living with us now or in the future that we can be financially responsible.

Once you have these numbers, you can understand what the shortfall is-which can be funded with life insurance or more life insurance than you currently have. This should not be particularly difficult to start. Use this Life Insurance Calculator, which has inputs for this type of information and can help you obtain a working idea of ​​how much life insurance you may need to cover any deficit needs.

4. Get help if you need them. Sometimes our need for life insurance is simple. Often, however, when we need to take into account the particular circumstances, it can become more complicated. Insurance agents are there to help. It's their job. They sit with you at no cost or obligation, and go through these steps with you and help you find a solution you can afford. You can "want" permanent life insurance policy to ensure the financial future of your family, but an agent can show you what you "need" is really a term life insurance policy you can allow without straining your budget or maybe it's a combination of both. If you do not currently have an agent to work with, you can start with advice on looking for and our agent locator.

5. Do not forget disability insurance. If you and your family depend on your income, then you must ensure that you have disability insurance. Ask yourself honestly if you were sick or injured and unable to work, how long can you survive financially without your salary? In a survey that life happens is we found that most Americans feel the effects within a month or less. Keep in mind that Social Security pays disability benefits that average about $ 1,100 per month, and it can take a year, often much to even get this payment.

Disability insurance pays you a portion of your income if you become ill or injured and unable to work. It can be offered as part of your benefits program through work, but be sure to check with your human resources department, and know what percentage of your income is replaced (often 60% or less ). You can also buy an individual policy, you own, and so does not depend on your benefits program being reduced or even eliminated. To have a working idea of ​​how much you might need, you can use this Calculator disability insurance needs. Again, this is something that the insurance agent can help you understand as well.