Enough Life Insurance to Feel Financially Secure

Without enough life insurance, an early death can have a long-term, negative impact on the finances of the surviving spouse.
Having an amount of life-insurance that is three to four times household income can help the surviving spouse be more financially secure, according to a new study from MetLife. Less life insurance than that and the surviving spouse can feel not only financially insecure but be forced to make numerous life changes immediately.
While the study found that 8 out of 10 survivors had to make financial adjustments, life insurance may help limit the number of changes that need to happen right away.
For example, of the individuals who participated in the life insurance study:
• 42% who received no life insurance benefits said they had to borrow money from friends and family compared to 25% of those receiving benefits.
• 36% who received no life insurance benefits relocated residences compared to 23% of survivors receiving benefits.
Term life insurance can be an affordable option for young families. And it is important that both men and women have life insurance. The survey found husbands who lost a spouse received significantly less in benefits because the wife had a small life insurance policy. Life insurance is not just about being able to replace loss of an income. It is also about having to pay for services that the individual may have handled, such as child care or elder care.

That’s why it’s important to regularly review your life insurance policy, both husband and wife, and make sure that the amount of the benefits is appropriate to at least continue your current lifestyle.