Most people don’t have life insurance or enough of it. In fact, over 30 million Americans do not have enough life insurance coverage, according to a study produced by LIMRA. In many cases, that average shortfall comes to over $200,000 but the gap is even bigger for people who earn a great deal of money.
Many people purchase life insurance when they are younger and rates are accordingly much less expensive. However, their needs may adjust overtime as they increase their income, assets or need to plan for the future, such as providing their loved ones with educational support for college.
Checking off the box for life insurance and not revisiting your coverage needs over the long run could end up hurting your family members. If you took out a $200,000 term life insurance policy, for example, and that policy ultimately expires or fails to cover all of your needs, your loved ones will have to deal with this shortfall.
Most people don’t want their family members put in this difficult situation and should choose to revisit their life insurance planning strategies on an ongoing basis. This can increase your comfort level in knowing that you have done everything possible to protect your loved ones and continue to evaluate or add more insurance as needs called for it.
When used strategically, life insurance can support your existing estate and long term care plan. You should always evaluate your individual needs with the help of a dedicated estate planning lawyer to ensure you’ve covered all your bases.
If you want to create or update your MA estate plan, schedule a consultation today.
