Determining your current life insurance needs is important, but your needs may change in the future. Projecting future coverage needs requires you to pay careful attention to inflation, as well as changes in your personal circumstances.
If you base your life insurance on your current income and today’s cost of goods living, you are potentially shortchanging your family’s future. Because inflation affects the future purchasing power of your money, it also affects your future life insurance needs. Be sure to account for increases in the cost of living as you insure your family’s current and future financial security. Other common life insurance needs that may be affected by inflation are mortgage obligations and college education costs. If you are considering buying a new home or sending a child to college, you may need to increase your life insurance to help cover rising costs.
Regular reviews of your insurance coverage can help you keep pace with inflation and your changing needs.
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