Change the Conversation
One of the harshest lessons from the Covid-19 pandemic is how truly uncertain life can be. Take a moment to realistically consider how your family will manage if you weren’t in the picture. It may be uncomfortable to think about, but ensuring their protection means doing some smart, advance planning.
If you are the major income earner, instead of calculating how much life insurance you need, consider instead how much income you must replace. This helps you realistically plan for your family’s protection.
If you should die, how much income does your partner need? Your spouse will invest the policy payout to provide that income. Factor in roughly a 5% yearly return. How big should that investment be? Ask your Carte Financial Advisor to help you calculate how much insurance will protect your family’s future.
Your plan must fit within your budget. To support the family, your spouse could encroach on that invested capital. This means you will need less insurance coverage.
However, it will compromise the investment potential of the death benefit. There is a risk of running out of money. The ideal scenario is providing enough insurance so your family can live off the investments, not the capital.