How much life insurance is enough?

Nobody likes to think about life insurance much less talk about it but it should be part of everyone’s long term financial planning. Life insurance is much more than just the death benefit. Knowing that you have enough to take care of any dependents that you may have for as long as they need it is important. At Dove Insurance Agency we have more than 50 years of insurance experience that we are happy to share with our customers.

How much life insurance you need is dependent on several things.

Do you have dependents? Dependents can be your children and spouse but there are others who may be dependent on your income. You may have parents who may need some help as they age, a sibling with a disability, or even a business partner.

How old are your dependents? How many years do you want to provide for them?  If you have young children the number of years may be as much as 20 or more considering they may want to go to college. For a dependent with a disability, it can be for their entire lifetime.

Do you have debt? Most people have some debt but it isn’t just about credit card debt or a car loan. If you have a home, likely you have a mortgage and if it is a recent purchase it can be quite large.

Have you taken care of your final arrangement? These days a funeral can cost upwards of $10,000 and even if you have no other life insurance, having enough to cover your last expenses can save your family trying to gather enough to pay.

Experts recommend that you have at least 8-10 years of your salary in life insurance. This is just a recommendation, your expectations may be much higher or lower. Only you can decide what is enough.

At Dove Insurance Agency in Christiansburg, VA we are here to help you to get the amount of life insurance that is right for you.  Give our office a call for a no-obligation quote or get an online quote instantly!

Protecting Your Family Home With Life Insurance

There is a special kind of life insurance that you buy to protect your home. This is sometimes called mortgage protection insurance. Regular home insurance provides protection against calamities that damage the house. Mortgage protection insurance pays off the mortgage if the insured person dies. It can also be extended to pay benefits while that person is alive if they become permanently disabled or get a terminal illness.

Why is life insurance important for your family home?

The median price for a home in Virginia is $285,587. These prices are going up by about 4% each year. Most families need two incomes to be able to sustain the cost of living expenses necessary to own a home. If one of those income-earners is no longer able to make their part of the needed financial contribution, then this puts the family at the risk of losing their home.

The grief of losing a loved one is bad enough. Add losing the family home on top of that grief is the worst kind of emotional torture.

Mortgage Protection Insurance

The good news is that mortgage protection insurance is available to protect your family from this horrible risk. It is usually easy to get approved for this type of life insurance. It rarely requires a medical exam, even for those with pre-existing medical conditions. Talk with your agent at Dove Insurance Agency, serving Blacksburg, VA and the surrounding area, to see what is possible for your specific circumstance.

Peace of Mind

Dedicating the proceeds of a life insurance policy to pay off a mortgage is a very wise financial planning strategy. You will know what happens if you die and that your family will still be able to live in the house that they love while no longer having to make a mortgage payment. If you extend the benefits to pay a claim while you are still alive for terminal illness and permanent disability, you will enjoy the protection as well.

Contact your agent at Dove Insurance Agency in Blacksburg, VA to get a quote for this special kind of life insurance.

How Much Life Insurance Do You Need?

When purchasing life insurance, the question really isn’t how much you need, but how much capital your family will need at the time of your death, which depends on two variables:

  • Expenses. How much will be needed at death to meet immediate obligations? This amount takes into account all final expenses: uncovered medical bills, funeral and estate-settling costs, outstanding debts, mortgage balance, and college costs to name a few.
  • Income. How much future income is needed to sustain the household? This is the number you’ll arrive at after calculating the “present value” of cash-flow streams your family will need after your death.