Determining your needs

When purchasing life insurance you must assess your needs to know what kind of insurance plan will meet those needs.

Here are some common needs for life insurance :

Final Expenses - These could be unpaid hospital bills, funeral expenses, unpaid debts, probate costs, and estate and inheritance taxes.

Readjustment Fund - This may be used to cushion the immediate lifestyle adjustment that a family must make when a loved one dies. The family may be forced to move, or the surviving spouse might have to look for a new job. In addition, a working spouse may find it difficult to return to work immediately after the death of a partner. The readjustment fund allows for adequate bereavement due to loss.

Supplemental Income - After the readjustment period, there should be a consistent income stream to help pay for the family's living expenses, such as mortgage payments, monthly bills, and daycare.

Educational Funds - Adequate funds should be available for the childrens' education. This might include elementary school, high school, and college.

Retirement Fund - There should also be adequate funds available to ensure that the spouse can retire comfortably.

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