How much is too much??

We all should have a life insurance policy which will cover the cost of our final expenses.  If you are married and have children, you should have enough insurance to cover what would be your income for at least a year and maybe more if your spouse is unable to work because there are small children to care for.

So, it would be wise to decide if you want to be cremated or buried (burial needs a cemetery plot), and if you want to have a wake and a church or memorial service.  There is a large difference between being cremated and having a small memorial at someone’s home, as opposed to being embalmed and having a wake, church service, burial at a cemetery and a brunch at a restaurant. So, think about what you want and do some checking on pricing at nearby funeral homes as well as cost of burial plots.

If you are single and think you will remain so, then a policy which will cover your final wishes as well  as some extra for the beneficiaries you chose as they will be doing all the work involved with the arrangements for you.  The idea is to not have them pay out of their pocket for anything.

In choosing beneficiaries, make sure they know your wishes and that they are your beneficiaries. At the very least, tell them the name of the insurance company where your policy is.

Regarding accidental death insurance……  This is a separate policy which is usually reasonably priced but it would only cover you if you died from an accident.  If you died from natural causes or an illness, it does not cover anything. It will just lapse at your death.  No one benefits unless you die of an accident.  You may want to consider this if you have a spouse and or family. You’re betting you’ll die from an accident.

And some have accident insurance which covers not only some of the medical bills should you be in an accident, but also covers a small accidental death policy within the accident policy should you die from said accident.

You can always add to insurance ‘down the road’ if your status changes and you need more coverage.

Whole life insurance is just that…. you pay premiums your whole life.  There is a 20 payment life policy which as the name implies, you pay annually for 20 years and the policy stays in place for your life in the amount you chose.

Term life insurance is a policy which covers you for a term of life……  You may choose term until age 75, and pay each year until that age.  If you die at 75 years and one day, there is no payment to your beneficiaries.  But if you die a day before your 75th birthday, your beneficiaries will get the amount of the policy…..(you’re betting you’ll die before age 75).