A Bad Surprise

I looked over a policy this week for a local family, and we found something we didn’t realize… their term insurance was set to go up in price every four years by more than 50%. For example, that could go from $20 to over $100 per month over the course of 20 years. Now, that might’ve been explained when they first bought it, but I get it — life gets busy, and things get missed. This is why I encourage folks to check their policies once a year. A quick review can make sure A) you actually understand what you have B) it still fits your family today. If you’ve got a policy, you haven’t looked at in a while, I’m happy to go through it with you and answer all your questions!

Most families don’t intentionally plan to be unprotected. They just underestimate the math. When someone tells me they have $100,000 or $250,000 of coverage, I usually ask one simple question: “What does that cover?” Your income? Your mortgage? Your final expenses? Let’s walk through very basic income replacement math. If someone earns $60,000 per year and wants to replace that income for 5 years: $60,000 × 5 = $300,000 That’s before we factor in: Mortgage payoff Car loans Credit cards College funding Final expenses This isn’t fear-based planning. It’s just adding up what YOU want protected. Debt + children + time compounds quickly. Many people choose a round number because it “sounds” right. But what sounds better is… Fully funded college. Payed off house. Replaced income. The proper amount of coverage does all of these things. The goal isn’t to go overboard. The goal is clarity. Because most of the time, when we actually run the numbers, families realize they weren’t overinsured… They were underestimating what their income was truly worth. Life changes quietly. Coverage should change with it. If it’s been a few years since you reviewed yours, it may be worth running the math again.

How Much Protection Do You Need? A simple way to estimate your life insurance needs is to think about how long your family would need your income if you weren’t here. 1. Start with your income. Multiply your annual income by the number of years you want your family to be supported. A common starting point is 5 years, but many families choose more depending on their situation. 2. Add in major financial obligations. This includes things like outstanding debt, a mortgage balance, or future goals such as college funding for your children. 3. Expect the total to be larger than you might initially think. People are often surprised by how much it costs to replace several years of income, especially when future goals are included. 4. Remember that this number isn’t permanent. Your coverage should evolve as your life changes—your income, family needs, debts, and long‑term goals will shift over time. Once you have your initial number, you’ve taken the first step toward protecting your family’s financial future. From there, you simply adjust your plan as your life grows and changes.

Why Income = Stability? Most families feel fine. - Steady job. - Bills getting paid. - Vacation once or twice a year. On paper, everything looks stable. But here’s something most people don’t think about: What keeps you stable isn’t your retirement account or your home…. It’s your income. Income is what makes everything else possible. - It pays the mortgage. - It fills the grocery cart. - It keeps the lights on. - It sends your kid to daycare. - It puts presents under the Christmas tree. When income stops, those things don’t slowly fade, they feel the impact quickly. That’s why life insurance isn’t really about funeral costs. It’s about replacing time and experience. One of my members completely changed my viewpoint on this. She lost her husband at a young age, but because of his policy she was able to maintain the same lifestyle as they were accustomed to. - Family vacations still happened. - Presents were still under the tree. - And most importantly, her kids were taken care of. Most families don’t review coverage until life forces them to. But reviewing earlier gives options. And options bring peace of mind. If you haven’t reviewed your coverage in a while, I’d love to help.