Stick up for the KIDS!

I just read a great article in a financial planning trade magazine, and had to share it with others. 

If you currently have life insurance, how do you know if you have enough? In today’s low interest rate environment, many families could wind up in dire straits, should they experience the untimely death of an insured parent. Many of my clients come to me with the belief that their employer provided life insurance is enough. In most cases, this coverage is typically 1 – 2 times annual salary, and ends at termination. 

Let’s assume that you, the husband (or wife), has only $250,000 of life insurance via your employer when we consider this awful scenario: 

You are killed by a drunk driver. Your spouse receives a $250,000 life insurance payout. At a 1% interest rate, that will provide $250/month. Now look at your children, and tell them that their surviving parent will be ok with $250/month. 

How about if we shoot for $50,000 annually to provide the family? That would necessitate a life insurance policy with a $5,000,000 death benefit. Most families are FAR way from having that amount of insurance. 

The point I am trying to make is, you must stick up for your kids. You MUST be fully cognizant of your life insurance coverage, as well as review it periodically to ensure you have enough. If your employer provided insurance policy is not enough, you should consider supplementing that with a private policy. 

As with any financial or tax-related matter, be sure to check with your financial and tax advisors. If you would like more information, please contact Catherine Valega, at 617-407-3566, Catherine@greenbridgewealth.com, or visit us at www.greenbridgewealth.com .