Review Your Life Insurance Amounts

Life insurance is a key element of most people’s financial plans. Unfortunately, many Americans have not taken the time to take out a life insurance policy. Perhaps more alarming, most Americans who do have insurance policies do not have a large enough policy to sustain their family. A recent article discusses issues concerned with life insurance.

Life insurance is an important part of any estate plan because, through life insurance, a person can provide an immediate source of cash to his or her heirs. The heirs can then use the cash for probate expenses, funeral and burial expenses, and any other necessary expenses.

Typically, people purchase a life insurance policy after an important life event such as marriage or the birth of a child. After the initial purchase, however, most people forget about their policy. In order to have an effective estate plan, it is important to continually examine your insurance needs and update your policy as necessary.

The first step towards an insurance examination is determining what your routine living expenses are. Then, factor in other expenses such as outstanding debt, anticipated bills such as college tuition for your children or grandchildren, funeral expenses, and uninsured medical expenses. When selecting or updating your life insurance policy, be sure that the benefit covers these expenses.

For assistance in planning your life insurance policy, contact us at (626) 696-3145.

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