Perhaps you’ve heard the saying, “Preparation is the key to success.” But when it comes to life insurance, knowing when to prepare is almost more important than the preparation itself. This calculator is one easy tool you can utilize today to determine your life insurance needs. It estimates how much life insurance you would need to meet your family's needs if you were to die prematurely.
It can be overwhelming and difficult to think about life insurance as early as your 20s, but life moves fast. Before you know it, you’ll be in your 30s and possibly supporting a family. Even if you have a different life plan, taking care of those who matter most is always a wise choice.
Many consumers believe they simply can’t afford life insurance on top of all the other bills they pay at an early age. That’s a valid concern! After all, you should never engage in any financial venture beyond your means.
Several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder also may pay surrender charges and have income tax implications. Before implementing a life insurance strategy, you should determine if you are insurable. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.
Insurance can be an intimidating topic, but it doesn’t have to be. Even if right now isn’t the best time to purchase life insurance, discussing the future is a smart move. At Lam, Po & Xu CPAs, we speak finance in your language and aim to help you keep more of what you’ve achieved!