A question that frequently comes up in our client financial planning sessions is, “How much life insurance will I need?”. On this week’s Mullooly Asset Management video, Tim shares the six main questions people who want life insurance need to answer.
It’s important to keep in mind that your answers to these questions will change over time. Revisiting these questions every few years is a smart idea! Your answers will be much different at age 30 than they are at age 60.
The Six Life Insurance Questions to Ask Yourself
1.) How many people depend on YOUR earning capacity?
2.) How much money would your dependents NEED for living expenses?
3.) How LONG will it take for your dependents to become self-sufficient?
4.) Will there be substantial DEBTS that should be paid when you pass away? (Think mortgage!)
5.) Will you owe TAXES on your estate? Also, remember there will be INCOME TAXES from your final year too!
6.) What are your “final” expenses? Funerals cost more than you think these days.
This is a basic financial planning question that comes up often at Mullooly Asset. Hopefully you’ll find Tim’s video helpful, and feel free to contact us with any questions at all!
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