Determine the exact amount of coverage you will need to protect the people who depend on you.

A mistake that we often see people make is basing their life insurance coverage on a guess, or just grabbing a number out of thin air without realizing what the impact of inflation could have on their life insurance proceeds.

Life insurance is not only the cornerstone of a solid financial plan, but it’s hands down one of the most cost-effective ways to protect the people who depend on you financially. What would happen to your family if you were to die prematurely? Would they be able to maintain their current lifestyle? Would your kids be able to go to college? Would your spouse be able to shoulder the load with one income?

If you have a child, are married, or are carrying any kind of debt, purchasing life insurance is a no-brainer. If all three, well, hopefully, you already have life insurance.

Here are a few other reasons to have life insurance though:

• charitable donations
• pay federal death and estate taxes
• create an inheritance for your heirs
• pay final expenses