What is your human life value and why does it matter?
You wouldn’t think of insuring half of your car, home or other important personal property, would you? Yet, when people are looking to purchase life insurance, a common perception is that only some people need coverage or those that do have insurance only opt for very low coverage. However, what many people forget is to account for their human life value. Just like assets have value, your life has one, too.
Simply put, your life is your largest asset. Your full human life value must take into account the financial sum of all you could have earned and produced in your lifetime. It is arguably your largest asset, and therefore, the key legacy for your family, business or charitable interests. With an income, a family can enjoy assets and can afford education for children. While life insurance can and never will replace a person, the death benefit from the policy will help survivors financially in the event of the policyholder’s death.
To determine how much life insurance coverage you need, you should determine your human life value. Generally, families need at least five to seven years to get their finances back on track after the death of a primary breadwinner. Sometimes, it takes longer than that. Even if you think your current insurance will be sufficient, many workplace policies only covers 1.5 times your annual salary. Leaving your family with enough funds to recover is imperative.
The good news is that you don’t have to determine all of this alone. It’s important to work with a professional insurance agent who can find the right coverage to fit your life value and budget. Contact the team at Donald Weiss Insurance Services. Our team is ready to get you the coverage that you need today.
