You might never have thought about this before, but how are debt and life insurance connected?
Well, the answer is very simple. Debt is one of the largest financial struggles in society today—total consumer debt has grown to a staggering $14.9 trillion as of 2020. That represents a staggering financial burden on Americans throughout the country.
But what happens if someone in debt passes away? The debt doesn’t just vanish. The estate of the deceased is often responsible for repaying creditors. That means a family, already down an income, has to cope with the stress of managing debt.
That’s where life insurance can help.
Life insurance pays out a lump sum in the event of death. The money can help family members repay debt, care for children or other dependents, and provide financial security to those left behind.
So how much life insurance do you need? That’s something only you can answer for your own household. Typically, experts recommend 10X your annual income to provide a sufficient financial cushion for your family. But, depending on your level of debt or the particular needs of your spouse and children, you may require more coverage!
Life insurance could be critical for the financial well-being of your family if you’re carrying debt. It might provide the cash they need to pay your creditors and start building a new future.
If you’re looking for life insurance, contact me. We can estimate the amount of protection that’s right for your family!