A Checklist: Expenses Your Life Insurance Should Cover

A Checklist: Expenses Your Life Insurance Should Cover

It can be easy to underestimate how much life insurance you will need, especially if you only consider your final, burial expenses. Life insurance provides the opportunity to not just clear the slate of your debts, but to provide for others after your death. Here is a checklist of items you may want your life insurance to cover.

  • Final expenses. This should include final services, casket, cremation and other costs associated with a funeral and burial.
  • Medical expenses. Frequently, when death is due to illness, large medical bills can be left behind. This can be difficult to estimate but should be considered.
  • Credit card debt. Even young people can have significant credit card debt if they would prematurely die. Your estate will be held responsible for these debts.
  • Car and other loans. This is critical, especially if family that is left behind depends on the car for daily transportation. Be sure to include any other loans like department store or home improvement loans.
  • Student loan debt. Student loan debt can follow young people for years and even decades. It is important to account for these after death, particularly if they were co-signed by a parent or guardian.
  • Mortgage. If you have a family, you will want to ensure they can stay in the house you live in. Accommodating a mortgage payoff can help accomplish this.
  • Future college expenses. If you have children, you may want to consider having adequate funds to pay for their college education. Be sure to include inflation in your estimate of future college costs.
  • At least a year’s income. Your death will likely have devastating effects on your family. You can minimize the damage by accounting for at least a year’s worth of living expenses for them.
  • A future legacy. Life insurance allows an opportunity to leave a financial legacy to a favored non-profit or charitable organization.

When you account for all the above, it is easy to realize how much life insurance you should really have. Acquiring life insurance when you are young and healthy is more affordable than most believe and our independent insurance agents can help. They have access to a multitude of life insurance companies who may help you achieve your goals at an affordable price. Contact us today to get started building a life insurance program you and your family deserves.


Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Want to learn more about
our blog writer?

Read more about KayLynn's background.

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Do You Still Need Life Insurance After Age 65?

How Life Insurance Can Help into Retirement

Why Life Insurance Is Such a Good Bet

A Practical Way to Protect Your Family

Why Permanent Life Insurance Is Still Popular

Is Permanent Life Insurance the Best Choice for You?

Why Everyone Should at Least Have a Small Life Insurance Policy

Even a Smaller Life Policy Can Be Meaningful

Life Insurance 101: What Everyone Should Know

Here are the Basics You Should Knowledgeable

Buying Life Insurance When You Have the Most Options

When Is the Best Time to Buy Life Insurance

Unique Situations That Call For a Life Insurance Quote from an Independent Agent

Your Lifestyle May Impact Your Ability to Get Life Insurance

Why Term Insurance Is So Popular

More Families Are Turning to Term Insurance For Good Reasons. Here’s Why.

Setting a Life Insurance Goal

You May Have Goals For Savings and Investments. What About Life Insurance?

Should You Have Life Insurance? HINT: Ask Your Spouse

Odds Are Your Spouse Would Want You to Have More Life Insurance Coverage