Home >> I have life insurance for 50,000 dollars that my employer gave me for free, is this a good amount?
I have life insurance for 50,000 dollars that my employer gave me for free, is this a good amount?
Ok so I was called to the HR guys office to day, and I was given the option to receive dental, health and life insurance. The life insurance was free, and they said that when i die, 50,000 goes to whoever I want. Is this good compared to most employers or about average? It seemed like a lot to me, but this is the first time ive ever had insurance of any kind so i wouldnt know.
Usually, if you are serious about having life insurance, you'd want to have enough to clear off any debts that you have -- your mortgage, your car, and any other small debt. However, if you are single and don't have any dependents or people that you want to leave an estate to, $50,000 will definitely cover your funeral arrangements, and help out with any costs that come from liquidating your assets to pay outstanding debts.
Just be sure to have a will. Without a will, whatever ideas you might have about how to disperse your money may not be honoured. Also, it usually costs your estate more if you die without a will.
thats alright if thats all you want to leave somebody but you have to remember a funeral cost about 10,000.00 dollars and if theres still a balance owed on the house and you really want them taken care of with no worries get a larger amount.
It is actually on the low side. What you want to factor in when deciding how much life insurance is enough is what the money is going to be used for. If you would leave a spouse and children behind, then, no, it is nowhere near enough. If you are single, it will probably do. Keep in mind that depending on many factors, funerals can cost $10,000 or more.
yes it is . it more than what i got i got only 18 grand were do i apply
They gave you life insurance for free? That's great! $50,000 is a good amount. How old you are and if you have a spouse and/or kids to support make a difference on how good it is.
If you are single, then that's great money. That more than covers your funeral and other costs and debts. If you are married and/or have kids, than that still covers your funeral and gives your family some money.
With that kind of money, I would make a will now. You can die anytime. Don't just think that because you are 20 yrs old (I have no idea how old you are), that you'll live for a long time yet. If you have kids and/or spouse, you need to specify in a will what you want done with that money when you die. For example: pay for funeral and what ever is left goes into trust funds for kids under 18 yrs of age, or donated to your fave charity, or left to your parents, or your best buddy, or any combination of any of the above. For example: pay for funeral, then 10 grand to parents, 2 grand to fave charity, 3 grand to best friend, whatever.
That's quite a bit of money and if you have parents and a spouse with/out kids, you will have people fighting over it when you're gone. If you are single, then you can specify that one person gets it (like your parents).
That's good that you get insurance. My hubby works 80-100 hours a week and we have no coverage from his employer.
Most employers offer it as 1x, 2x, or 3x your annual salary, or a multiple of that.
As to is it a good amount - well, it's better than nothing, and it's FREE.
Obviously, you don't seem to have a goal that you want life insurance to fulfill, so I'd just take it and be happy. If you're THINKING about it, though, establish the goal FIRST, then go shopping for life insurance.
You need to D I M E yourself...
Add up all these and you will have the exact amount of insurance you need.
D - Debt
I - Income - ( if you are leaving a wife etc, does she need income? Take your monthly amount times 20 years.)
M - Mortgage
E - Eduacation ( any children need to be eduacted?)