From Two Incomes to One
How to Adjust to the Loss of an Income Provider
Most families depend on two incomes to make ends meet. If your spouse died suddenly, could your family continue to meet all their financial obligations, from paying rent or the mortgage to daily living expenses? Could your family continue their standard of living on a single income? Would your plans for the future stay intact?
Almost thirty percent of Americans say that it would only take one month to feel the financial impact from the death of a wage earner. The economic challenges of this day and age often requires two incomes to meet overall family expenses, so the loss of a spouse and income provider can lead to financial trouble. With the death of an income producer also comes possible lost time at work from the remaining spouse to manage the home.
Life Insurance Provides Real Options
The good news is that life insurance rates are low and there are many different kinds of products from which to select. A question we are often asked is, “How much life insurance do I need?” The answer to that depends on your individual situation, but a general guideline is a life insurance limit of at least 10 times your annual gross income. For example, if you earn $50,000 per year, your family would need to replace that amount. A $500,000 life policy could return $45,000 to $50,000 annually, depending on interest rates.
Most people see the need for life insurance, but often put it off until it is too late. The younger you are when you buy life insurance, the lower the cost and the easier it is to be approved.