Do I Need More Life Insurance?
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I actually have had this conversation several times before in the past few weeks about whether or not I have enough life insurance. I do have one policy which covers about 4x my annual Salary, but they say you should have 10x your annual salary in policies optimally to protect your family in case of an accident.
What I probably will do is fish around and collect some term life quotes early next year to pick up a 2nd policy. According to the Total Money Makeover which I am trying to follow, Term Life Insurance is by far better than Whole life since if you put the difference in monthly payment between whole life and term life into even a modest Mutual Fund or Money Market, you will yield far more savings and more money from the invested funds than you would from your Whole life policy.
Either way, I need to purchase another policy next year just to keep my family covered in case something should happen to me.
-Justin Germino
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Tags: getting more insurance, how much insurance, how much life insurance, multiple life insurance, proper life insurance coverage, secondary life insurance, term life insurance, term or whole life, whole life insurance
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Vote on this arti... (4)
Klaus @ TechPatio (3)
MinnieRunner (3)
MissEb (2)
Steve@Kettle Corn (2)
I try to have enough life insurance to:
1) pay off car
2) pay off house
3) pay off taxes
4) .5x salary left over
One problem with the whole life vs investment comparison is that you have to have the discipline to put the money in the investments and leave it there. Speaking from experience.
Ralph´s last blog ..Sunday Funnies – Inside the Tube
Yeah, I hear the discipline part, working on that one myself.
I have enough to send my kid to college, payoff some minor debt and leave an extra 150k for his mom. I can sleep at night know that is there. Costs $58 per month.
Julie@Antique Car Insurance Online Quote´s last blog ..The Importance of Finding An Antique Car Insurance Online Quote
If you have a family that’s dependent on your income, then you need life insurance. Usually the amount that you would get is 3x your salary.