While life insurance isn’t the most fun topic to discuss, it is an important part of your financial planning and, ultimately, the plan for your retirement. How can you determine how much insurance you truly need, though?
The first question to ask yourself is: Do you want or need life insurance? Since “want” is a very personal topic, I won’t spend much time there. Rather, the question is on need. So, how do you determine if you “need” life insurance? For starters, ask yourself, “If I suddenly passed away, would that leave a financial hardship for someone who is relying on my continued financial support?” If yes, then you likely have a life insurance need. The antithesis would be if someone isn’t relying on your financial support, and by that, I mean either assets or income.
