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How Do I Talk About Life Insurance?
It’s not the easiest thing to talk about or the most comfortable thought…the idea that one day you won’t be around to support your family. However, a Farmers Life® insurance policy1 can help keep your family’s hopes and dreams alive even if you’re no longer here to provide for them.
How do you confidently and comfortably talk about life insurance?
How do you know which policy you want, or even how much life insurance to get?
How do you talk to your family and your agent about your future wants and needs?
Ask Yourself Some Important Questions
Do I need Life insurance?
Before you can confidently talk to your family and your agent about life insurance, you should know if you need it or not, and why. Ask yourself some key questions about the future, like:
- Do you have life insurance now, possibly through work?
- Are you single or married? Do you have children or grandchildren?
- Are you worried about leaving your family in debt if something happened to you?
- Have you planned for your final expenses (funeral costs, etc.)?
- Would your death affect your love ones’ financial stability?
It’s important to get a sense of just how important you are to the financial stability and future of your family. Losing you would be hard enough, but your lost income might leave them in dire financial straits as well. That’s why it’s imperative to start planning for that now with a life insurance policy.
How much life insurance should I get?
Once you’ve addressed the fact that you want life insurance, or more life insurance than your employer provides, it’s a good idea to start thinking about how much coverage you may want. There are many personal factors that affect how much life insurance is right for you. You don’t need all the answers now.
To get a better sense of how much insurance you’d want and more confidently talk to your agent about life insurance, take a look at each factor and start to add them up.
Download the helpful “Needs Analysis Questionnaire” (PDF) to make things easier.
1. What are your monthly household expenses (utilities, childcare, activities, groceries, meals, etc.)?
2. Do you have children or grandchildren? If so, do you plan to pay for their:
Education. How much would tuition and fees cost? Do you have a college fund for them?
Wedding / Future expenses. How much would you want to pay or set aside for important events?
Future financial security. Would you like to help protect their future financial security?
3. Do you have a mortgage? Jot down your current balance, and include your annual taxes and insurance costs.
4. How much credit card debt, other loans and expenses do you have?
5. How much do you pay each month for health insurance? Would your family be able to keep their current health insurance without your income or job? If not, it’s important to include an amount to continue health insurance.
6. Do you own a business?
7. Would you like to leave a legacy, either to charities, or as an inheritance?
8. Does someone in your household provide care for a child, a family member with a disability or aging parents? Would they be able to continue doing this without your income? Keep in mind, that generally, a stay at-home caregiver costs about $54,000 per year2.
9. How much have you planned for your final expenses? For instance, have you considered:
- Medical care and long term care (not all end-of-life expenses may be covered by your health insurance).
- Funeral costs (if you haven’t made decisions about your last wishes, $15,000 is an average3).
You don’t need all the answers right this second, but it’s a good idea to start considering these factors to get a true sense of how much life insurance you need. That way, when you’re ready, you can speak comfortably and confidently to your agent and discuss how much life insurance you’d want to help cover your needs and protect your family’s financial future.