Life Insurance Coverage Needs in Boston and Massachusetts

Your life insurance policy should help cover your general necessity needs in Boston and Massachusetts. Start planning now to protect the most important assets of your life. It is never too late to start thinking about your families and your future.

What is the right amount?

There is no amount of Life Insurance that is universal among everyone. The amount of Life Insurance you should get depends on what you want your Life Insurance to cover in the event of an untimely death. Some experts recommend 7-10 times your income as a benchmark for the amount of Life Insurance you need. To find a more exact number, here are the things that people plan for when they decide how much coverage they would like to have:

1. Mortgage

Covering the remaining balance on your mortgage is an important part of any Life Insurance plan. Adding this amount into your Life Insurance planning, allows the surviving spouse to pay the mortgage in full if their spouse unexpectedly dies. This prevents survivors from having to sell their home, or change their standard of living, because they can no longer afford their mortgage payment.

2. Existing Debts

This is referring to any Equity Loans, Personal Loans, Student Loans, Car Loans, or any other liabilities you may have. Planning for these in your policy allows your survivor to pay these debts upon your death. Your survivor is then debt free and doesn't have to change his/her standard of living to pay both of your debts with only one income, if any.

3. Children's Education

Most parents find it beneficial to set aside a lump sum in their Life Insurance policy to cover high school and/or college educations for their children. Planning for future educational costs proves to be beneficial, because the surviving spouse typically finds it very difficult to keep saving money for education when their is a permanent loss in their household income.

4. Income for the Surviving Spouse

In the event of a spouse's death, an income stream is typically lost. To prevent this from affecting the survivor's standard of living and bill paying ability, money is planned into the policy to generate an income replacement for a designated number of years for the survivor. In deciding, take into consideration these three questions:

• How much would it cost your surviving spouse to meet your monthly living expenses such as utilities, transportation and food?

• How much would it cost your surviving spouse to continue to maintain his or her standard of living (buying new clothes, eating out, entertainment, taking the occasional vacation, etc.)?

• How much would it cost to maintain your children's current standard of living?

5. Spouse's Retirement

When a spouse dies, especially if he/she is the sole income generator, the surviving spouse typically finds it difficult to save for their own retirement. Setting aside a sum of money, for the survivor to invest, for their retirement, makes it easier for him/her to maintain their current standard of living.

6. Funeral Expenses

When planning, one should set aside $10,000-15,000 for funeral expenses. This is generally a staple on any Life Insurance policy. One should also consider planning for unpaid medical bills and estate taxes.

7. Emergency Fund

Typically, a 6-month emergency fund is sufficient to plan into your insurance policy. This allows the surviving spouse and family to get on their feet after an untimely death. During this very difficult time, people sometimes have trouble getting back to work and sometimes suffer a loss of income during those first few months. Setting aside 6-months of living expenses gives the survivors some breathing room in the aftermath of a loved one's death.

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