Life is full of minimums and maximums. What is the maximum air pressure we should have in our car tires, and what is the minimum state required insurance? What is the maximum capacity of a room, and what is the drink minimum at the comedy club?
When it comes to life insurance, there really isn’t a maximum. Many view life insurance as a way to pay final expenses, bills, mortgage payments, and even provide for the children’s education. Some will want to provide financially for their families for years beyond their death. This can quickly add up to a million dollar plus life insurance policy.
In many cases, maximum amount of life insurance should be the most you can afford. But what should the absolute minimum be? To begin with, the minimum should include enough to cover your final expenses, whether you are planning a full traditional funeral and burial or a cremation. Even with a more cost-effective cremation, costs can easily reach into the thousands of dollars.
You will also likely want to assure that any debts you have are paid. Be sure to include credit cards, loans, mortgages, car payments and any other personal debts.
You may also want to keep in mind that life insurance proceeds can be paid out rather quickly to your beneficiary. That can mean a ready source of cash during a difficult period. You may want to make sure there are sufficient funds for this period.
There are no legal maximum or minimums for life insurance. You should simply carry an amount you feel comfortable with, you can afford, and will at least offer some financial relief for your loved ones in the event of your death. You may not need a million dollar life insurance policy, but you should at least carry a minimum for your situation. Our independent life insurance agents can help. They can not only help you determine an appropriate amount, but can show you options in achieving that amount. It may be through whole life insurance or term insurance or a combination. Many are surprised at how affordable life insurance can be, especially when young and healthy.
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