Life insurance—that pesky thing your employer might offer, but you don’t really like to think about. We get it. But a take a step back and really consider its purpose. It’s there to protect the financial futures of your loved ones.
Be honest; when you first signed up for life insurance, you might have been thinking you only needed enough to cover funeral costs and possibly any debt you would likely have at the time. Don’t worry; many people assume this will be sufficient coverage. However, life insurance is more than just the cost of a funeral.
What’s life insurance and what should it cover?
It should be financial support for your loved ones in the absence of your income. If you’re married and/or have children, what’ll happen if your paycheck is suddenly taken away? If you elect to have a small policy, your spouse and kid(s) might not be encumbered by funeral costs, but there is a good amount of money that won’t be coming in each month to cover things like a mortgage, car payment, groceries, clothes, college, etc. It’s possible your family will struggle if you don’t have adequate life insurance.
What kind of policy do you need?
It depends. Someone with several children probably has different priorities than a single person with no kids. When getting a life insurance policy, you need to consider your dependents, their current standard of living, and your assets. This can help you determine what type of policy is necessary for you. As your life changes, your policy should be updated to reflect that.
Life insurance isn’t the most pleasant topic of conversation, but it’s an important one. When you’re ready to talk, you can look online for policies, speak with your human resources department, or visit Member One FCU for affordable policies to fit your needs offered by TruStage.
TruStage™ is a marketing brand used to identify products offered through CMFG Life Insurance Company and programs offered through CMFG Life insurance agencies to credit union members. This product is not federally insured by NCUA, is not an obligation of the credit union, is not guaranteed by the credit union and may involve investment risk.
You May Also Like
Term-life insurance is named so because it only covers you for a specified term, typically for 20 or 30 years. The main point of life insurance is to financially protect your loved ones in the event of your death.
Tidy up your finances with these six simple tips to declutter your financial life and give you a fresh start for spring.
Do you know the five key concepts to managing money?