5 Signs You Might Be Underinsured

No one really wants to think about life insurance. Getting life insurance does not have to be difficult.

How much life insurance is enough? That question is important one to answer correctly.

You may not have enough insurance if:

1.    You only have life insurance from your employer

These plans normally are very limited group plans ( a year’s worth of your salary), and are highly unlikely to meet your family’s long term needs: pay off debts, mortgage, college education. In addition, these policies are contingent on your staying at the same job. It is estimated that most people will have twelve different jobs in their lifetime.

2.    You are making more money

A higher income normally changes your lifestyle, think bigger home, nicer car. In addition, if you depart unexpectedly your family will struggle to maintain the same lifestyle without your income.

3.    Your stay-at-home spouse does not have any life insurance

Even if they do not make any reportable income that would need to be replaced, they perform valuable services that would need to be paid for if they are no longer in the home.

4.    You had a child

Or two! Raising a child is expensive – raising a child costs more than $21,000 per year on average, with our even factoring college or trade education. If you are a new parent, it is a good time to review your life insurance coverages. Think long term for life insurance. You would not want your spouse to have to struggle for food and shelter if you were no longer in the picture.

5.    You bought a new home

Paying the mortgage is the biggest financial need for any family and more challenging for a newly widowed spouse. If you bought a home, you will need life insurance to successfully pay off the mortgage. In addition, it is no fun to move, especially after a sudden or tragic loss.

The price of life insurance depends on four main factors: your age, your health, the type of policy and how much coverage you buy. In general, you will pay less the younger and healthier you are. You also typically pay less for a term life policy than a permanent life policy.

Dtown Insurance agents are experienced in all types of life insurance: Term, Whole, or Universal life insurance. We also have access to multiple life insurance companies, like AAA, Banner, AAA, and Pacific Life.

Call us today at 215-345-1796.