Reader’s Question:

I am a single parent of a 5-year old from Alabama. Do I need a life insurance? Can a life insurance cover my child’s college education? Will a life insurance pay my mortgage and credit card debts after my death?

Marianne

Montgomery, AL

Very relevant questions, Marianne.

Yes, I think you need one…especially that you seem to be the breadwinner of the family. A life insurance will take care of your family’s needs in the event of premature death. The logic is this: when someone else depends on your income, then by all means, secure his/her financial future by getting a life insurance.

I think all of your questions can be answered by one: How much life insurance do you need to maintain you family’s lifestyle?
To put things into a simple perspective, you have to bear in mind that when you plan to purchase a life insurance policy in Montgomery, you need to assume premature death. By doing this, you will be able to highlight your family’s needed protection from the loss of income in case you die.

A primary consideration when estimating your life insurance needs is the immediate, as well as the long term, income needs of your family upon your death. This includes, but not limited to, funeral expenses, final medical expenses for the insured, repayment of short-term loans (such as credit cards, auto loans, etc.), and paying off the mortgage.
Simply put, you need enough to protect your families’ loss of income if you die. When calculating the amount of Life Insurance that you need, you should consider the immediate needs of your family upon your death, as well as their long term income needs. Example of long term needs include lost income to support your family until your kid is grown up and need to pay for college. Retirement can also be protected by a life insurance.

For you to get the best deal, you may contact a local life insurance agent in Montgomery and ask for a free quote after you sit down and discuss your current circumstances. Or better yet, you can start to search online to get free quotes from Montgomery life insurance companies.