Buying life insurance
Around 6 in 10 Americans have some type of life insurance coverage, but nearly half of those who are covered don’t have enough coverage to meet their family’s financial needs. And, of course, that’s not even including the 40% who have no coverage at all.
If you have anyone depending on you, from aging parents to a spouse or child, you should have a term life insurance policy. This is true even if you aren’t earning any money if you’re helping others, such as caring for parents or children. What you do has value and someone would likely have to be paid to pick up the slack if you couldn’t do it any longer.
Buying a term life insurance policy is inexpensive and gives you peace of mind of knowing your family is cared for. Determine how much insurance you need by subtracting the value of your assets from the costs of long-term financial goals, such as paying off a mortgage and putting your kids through college. You could also use a simple formula, such as buying a policy worth 10 times your income plus $100,000 in college education costs for each child you have.
You can shop online for life insurance and should get quotes from several trusted insurers. Check with your state’s insurance department to make sure the insurer you choose is licensed to sell policies in your state so you’ll be protected if something goes wrong with the company providing your policy.