Life in Ruidoso, NM, has its perks. The fresh mountain air, fantastic winter sports and laid back New Mexico lifestyle are all amazing. Sometimes it’s hard to imagine thinking about things like life insurance, but it’s important. When shopping, you’re sure to have plenty of questions, but at Family Insurance Associates, we’ve found that the very top question is, “How much life insurance is enough?”
Consider Your Debt
No one wants to leave behind debt. Ultimately, all of the bills come due, and that’s not a pleasant thought. So, consider how much you have left on a mortgage, car loans, student loans or anything else. If the insurance policy can cover everything remaining on those loans, it’s a very good start.
Keep something in mind. You can be in a good financial situation and have debt right now. There’s nothing wrong with it. But, when you aren’t working, the paychecks stop coming. That’s why the insurance needs to cover all of your outstanding debts.
Who Do You Support?
That brings us to the next point. The paychecks stop coming. That means anyone who depends on you for income could be in a very difficult spot. This doesn’t just have to be a spouse or children. Plenty of people support their parents, other family members and other people in general. With life insurance, you can maintain that support by having a sufficient policy. The general idea is that the lump sum of life insurance can be invested to provide lasting income. The rule of thumb is to have $500,000 plus however much you make in a year. It’s not a perfect gauge, but it gets you in the ballpark.
You can see how getting the right amount of coverage can be tricky, even in Ruidoso, NM. A simple conversation with your Family Insurance Associates representative can make sure you have everything you need.