Since many companies offer group insurance to their employees for free, it’s easy to assume having this kind of coverage is enough. Unfortunately, most people who already have some type of insurance are underinsured. And if you only have group insurance, if you ever leave your company, your insurance protection does not go with you.  Make sure you understand how much coverage you actually need by answering the questions on page three and totaling the expenses. If the group insurance you already have does not cover this need, you should consider purchasing an additional life policy.  “Today, insured adults are more likely to have only group life insurance obtained at work. Adults with only group coverage carry the smallest amounts of life insurance.” LIMRA 2007

If any of the following situations apply to you, you need life insurance:

The loss of a loved one is hard enough emotionally without having it compounded by financial worries from the loss of an income. Life insurance can help your loved ones meet important financial needs beyond funeral costs including daily living expenses, medical bills, mortgage payments and college tuition.  The easiest way to approach life insurance is with a basic approach – term life insurance.

Everyone’s situation is different. When determining your own needs consider this:

Besides the daily living expenses your dependents will need, you also have to take into account funeral costs, lawyer fees, taxes and other miscellaneous debts that may arise due to an untimely passing of a loved one. The average life insurance coverage needed is $459,000 but the average amount owned is only $126,000.

“22% of families with dependent children admit, if their primary wage earner passes away, they will have immediate trouble meeting everyday living expenses and another 26% will only be able to cover expenses a few months.”* ( LIMRA 2007).

An easiest way to approach life insurance needs is with this basic approach –

$____________ (Mortgage)

$____________ (Car Payments)

$____________ (Credit Card Debt)

$____________ (Outstanding Loans)

$____________ (Other)

Sub Total $_____________

$____________ (Daycare)

$____________ (Tuition)

$ ____________(Room and Board)

$____________ (Other)

Sub Total $_____________

Funeral Expenses

3) Funeral

$____________Funeral/Memorial Expenses

$____________Legal Fees

$____________Taxes

Sub Total $_____________

Income

4) If you were gone tomorrow, how much money

would your family need to replace your income

and for how long?

$____________ (Annual Salary)

How many years? _____

Multiply the number of years with your annual salary:

Sub Total $_____________

Add up your four subtotals for a total expense:

Total Expenses $ _______________