dreamstime_xxl_27596330We’ve talked before about how life insurance can be a morbid topic for some people, while others are more pragmatic about why they need it. But no matter how open you are to it, there’s one thing that doesn’t change…it’s a good idea. We’re not going to say you have to have it, and you’re not legally required to have it. But the fact is, it can mean the difference between your family making it and crumbling after you’re gone.

So what determines your need for the amount of life insurance you need?

Your current income: Sometimes a family just likes their current income, and wants absolutely nothing to change financially after a loss…no downsizing the house, no selling the extra car. If that’s the case, then multiply your current income by your number of earning years, adjust for inflation, and buy a policy for that much.

Your income status: What we mean is, are you the sole breadwinner in your house? And if you are, does your spouse have the ability to take over as the breadwinner in the event of your death? If your spouse can easily support your remaining family, then you might not need more than a $200,000 policy. If your spouse has no marketable skills, or if they aren’t able to work because of a medical reason, they may need $1,000,000 to get them through the rest of their lives and the kids through age 18. And that doesn’t even cover…

Medical bills: Most of us hope we won’t languish long in the hospital. But because so much of health care is spent in the last year of life, your legacy might be hundreds of thousands of dollars in debt. Life insurance can help your family pay medical bills that stack up.

Your exit: Some of us have a very specific funeral in mind. Maybe a large headstone, a banquet to celebrate your life. Funeral expenses ramp up very quickly, so make sure that your family is able to give you the send off you’ve agreed upon by having the right life insurance policy.

When you’re not around, make sure that you’re still providing for your family. Let us help you find the right life insurance policy by contacting Black Hills Insurance.