Life Insurance Debacle: You Don’t Want to Spend the Money

Factors That Impact Life Insurance > The Cost of Insurance

Life Insurance Debacle: You Don’t Want to Spend the MoneyIn this series of posts, we’ve covered some of the basics for why your life insurance might be lacking, if you even have a Windham County Life Insurance policy at all. While saving money and allocating funds to necessities is likely a priority for many families, going without it can have devastating effects. Whether your life has evolved or you want to save money, this post will be dedicated to resolving the conundrum that is considering life insurance. After reading, hopefully you’ll have a better idea of whether this insurance policy is right for you.

Are you self-insured?

The age-old question of asking yourself if you really need life insurance comes down to one major factor: are you self-insured? According to Well Kept Wallet, being self-insured means you’ve got enough money to pay for final expenses and to support your family financially for the long-term if something unexpected should happen. In order to be considered self-insured, the following financial goals apply would apply to you:

  • Debt-free – This means that you have absolutely no debt, including a mortgage. Or, you have enough cash saved up to pay off any loans you might have and to take care of your family for at least a decade.
  • Savings & investments – A large savings and various investments can also qualify you as being self-insured. While “large” is subjective, this means that you have enough to cover your family’s living expenses for at least one to three decades after your passing.

So how much do you really have to save? For example, if your family’s living expenses were $4,000 a month, you’d factor in a 20% buffer then multiple that number by how many months you’d have to support them after your passing. If you wanted to secure them for a decade, let’s say, you’d have to maintain at least $480,000 in savings.

Think about it – unless you have this much money in savings, it’s unrealistic to assume your family will be taken care of in your absence.

Setting your family up for success.

It’s impossible to predict the future, and no one likes to talk about the “what ifs” in life. However, as we mentioned in our previous blog, if money is tight now, how would your family fare realistically after your passing? A term or whole life insurance policy costs a fraction of your earnings and can help to secure your loved ones in the event of an untimely death.

Not all insurance companies are created equally. Talk to your trusted local insurance expert to get the best deals on the best coverages available to you.

About Byrnes Agency

At Byrnes Agency, we can help you decide the type of Life policy that suits your needs. Our life insurance specialists can help you find the right type of policy so you don’t buy more or less coverage than you and your family really need. For more information, contact us today at one of our two locations.

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Dayville Office

Phone: (860) 774-8549
394 Lake Rd
Dayville, CT 06241
United States
info@byrnesagency.com
Hours of Operation: Monday- Friday 9:00am-5:00pm

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Norwich Office

Phone: (860) 886-5498
6 Consumers Avenue
Norwich, CT 06360
United States
info@byrnesagency.com
Hours of Operation: Monday- Friday 9:00am-5:00pm

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