What Happens Next?

10/2/2012

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No matter how close or far you are from transitioning, you’re no doubt thinking about what it will be like after you leave the service. In addition to finding a new job and possibly moving, there will be many other changes. Among them is the fact your SGLI will end 120 days after your retirement or separation.

Now is a good time to consider your options for buying life insurance that’s portable. This is financial protection you own that will go with you no matter how often you change jobs.

Wondering how much life insurance you need after your SGLI ends? Consider your stage in life and financial responsibilities.

If you’re single and have little or no debt, you may need only to consider how you would cover the cost of your final expenses, but often even small personal debt and medical bills can be a significant burden for family to pay. If you have sizable savings or other assets, you may use life insurance to generate income your family or executor can use to pay your estate taxes. Your assets are then preserved as a legacy to family members, a favorite charity or other cause. Yet another reason to buy life insurance is to protect your insurability now while you’re in good health and while you’re younger. Life insurance is based on your age, among other factors, so the longer you wait, the more you will typically pay for an equivalent amount of life insurance in future years. And if you become uninsurable down the road, it’s too late then to try to buy it.

If you’re married and have dependent children or have debts such as a mortgage, car payment, or credit card balances, your family could be at serious financial risk if you die suddenly and your income is no longer available to them. Adequate life insurance can help protect your family’s future and cover your personal financial responsibilities.

If you’ve finished raising your family and paid off your mortgage and other debts, your life insurance needs are different from when you were younger. If you’re married, the income your spouse earns or has at their disposal may be considerably less with you gone. And you’ll still need to make sure your final expenses and perhaps medical bills are paid. Enough life insurance helps “fill the gap.”

So, how much life insurance do you need? Use this free Life Insurance Estimator to find out.

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