Statistically speaking, the odds are that most of us will live a long life. But for the purposes of choosing a life insurance policy, you should always assume that you’re going to die tomorrow.
With that morbid assumption, plus your family’s expenses, it should be easy to calculate how long the insurance payout would last for your loved ones.
Many people make the mistake of making this calculation once and never revisiting the numbers. But the right life insurance policy depends on a number of variables, including your savings, disposable income, spending habits, and the size of your family. These variables can change significantly from year to year! Revisit the decision once a year to make sure that everything’s up to date.
You can’t predict the future. But some financial decisions should always be based on the worst-case scenario. Learn more about the best ways to handle your family’s finances with our Instaread on Money Magic.