If you weren’t here tomorrow, would your family have the financial resources to support their current lifestyle?  Would they have to move or go to work and put off a major expense, like college tuition?  If the answer is yes, then you may need life insurance.

Life Insurance Needs--Guiding Philosophies

Single With Dependants

Are you a single parent with young children?  Are you divorced and feel that your child’s other parent cannot or will not provide for your child in the event of your death?  Do you have parents that depend on you financially for monthly income?  If so, you need life insurance.  Your financial professional will be able to ascertain what amount of insurance will be enough to address the cost of your children's or parent's care and future objectives, like a college education.  Don’t rely on the goodwill of others.  Life insurance combined with good estate planning can help your loved ones have the future income to meet their needs and fulfill their dreams.

Married Without Dependants

If you’re a DINK -- Dual income, No Kids -- then life insurance should be considered if you’re concerned that either of you would not be able to maintain the same standard of living if one of you should die.  If you’re an OINK--One Income, No Kids -- make sure you have adequate life insurance on the working spouse’s life.

Married With Dependants

If only one spouse is working, make sure you have adequate life insurance on the working spouse’s life.  Life insurance on the non-working spouse’s life becomes necessary if the surviving family members will suffer financial hardship if the non-working spouse dies.  Will there be enough money to provide for day care if necessary?  Will you still be able to save for retirement or your child’s college education?  Your financial professional will be able to help you determine your insurance needs based on these and other factors.

If both of you are working, consider insurance on both your lives. Have at least enough insurance on each spouse to replace the income that would be lost if either of you died. Remember, it is very costly to raise and educate your children. Once your children are grown and out of the house, your life insurance needs generally decrease.