Life insurance is one way a family can protect against financial hardship in the event a loved one passes away. Kim DeVoss, an Arizona area financial adviser, writes on Ahwatukee Foothills News that it is important for everyone who needs life insurance coverage to apply for an adequate amount.
Some of the things DeVoss said life insurance can help with in the event the insured passes away, includes paying off a mortgage, funding college, assisting in retirement and/or protecting small business owners from losing their business.
"You might hear that your coverage should be worth around seven or eight times your annual salary. But there's really no one-size-fits-all formula," DeVoss said. "In determining how much life insurance you require, you should consider your age, your income, the size of your family, the amount of your mortgage, whether your spouse has a retirement account, your financial goals and other factors. Your financial advisor can help you assess these variables to determine the appropriate level of coverage."
According to the LIFE Foundation, 30 percent of U.S. households have no life insurance whatsoever. To avoid being part of the 30 percent of unprotected households in America, families should look into what policies can do for them and their families in the event of the loss of a family member.