5 Things Your Life Insurance Should Cover

When considering life insurance, it is important to know how much life insurance coverage you need. The answer to this question is not the same as the answer to the question, "How much can you afford?" When purchasing life insurance needs, you may want to consider all the pieces of the puzzle. Factors such as financial impact if you were to die prematurely, shared burdens of financial debts and current retirement savings all have an affect on the amount of coverage you need.  You should sit down with an expert in the field and discuss your particular needs and desires.

At a minimum, here is a list of 5 things your life insurance should cover:

• funeral costs
• student loans
• credit card debt
• mortgage
• income replacement

If you owned a business and you purchased a machine that was to generate an income stream over the next 25 to 30 years, would you purchase insurance in case the machine broke in the first few years? Or would you put all your eggs into one basket and gamble on the fact that everything would turn out okay?

In a later post, we will discuss why these particular items should be covered. Check out this life insurance calculator.

This post was reposted from http://finlit.biz/life-insurance/5-things-your-life-insurance-should-cover/, originally written on January 26th, 2013.