Life insurance will be important if you have loved ones who are dependent on your income.
Are you the breadwinner for your family?
Do they depend on you to provide food, clothing, and shelter?
If yes, life insurance is crucial.
A recent Nerd Wallet article asks “Can You Have More Than One Life Insurance Policy?”
According to the article, a life insurance policy should help replace your income if you die prematurely.
You will purchase a policy for a specific time period.
Why only for a term?
It should be sufficient to get your family through major life events and paying off debts.
Can you have more than one policy?
Most companies will ask questions to determine if your current coverage is already sufficient.
A few smaller policies could be better than one large policy.
This is called “laddering.”
This approach may even save you money.
It can also be beneficial if your coverage needs decrease.
Is replacing income the only reason to have life insurance?
It can be beneficial for estate planning, long-term care, and helping the needs of small business owners.
Working with an experienced estate planning attorney can help you determine what will be best for your circumstances.
Reference: Nerd Wallet (September 17, 2018) “Can You Have More Than One Life Insurance Policy?”