Читать книгу Finance & Grow Your New Business - Angie Mohr - Страница 43

What will happen when you die? Basically, anyone who is dependent upon you bringing in income will no longer have that source of income. This will be especially important if you have a spouse and children. The family home must still be maintained and the children’s education accounts must still be funded. It may be impossible for your spouse to carry the burden alone when you are gone. If this is the case, it’s imperative that you have life insurance to replace your lost income, at least until the children are grown and self-sufficient. If, however, you are single and have no other dependents, life insurance is not a necessity and the premiums that you would otherwise pay might be better off in an investment account.

There are many types of life insurance, some of which have an investment component to them. A discussion of the options available is beyond the scope of this book and should be discussed with your accountant or independent financial adviser.

How much life insurance do you need? You should be able to review your current spending budget and compare it to the after-tax income of your spouse (remember that he or she will most likely keep working). The shortfall between the expenses and the income will need to be funded through life insurance. Another alternative is to insure for the amount of your debts, including your mortgage. Then, upon your death, your spouse will only have to pay ongoing living expenses and not have any debt payments.