Who will help provide for my family if I'm no longer here?

With Life insurance, the answer is - you will. Life insurance proceeds may help your loved ones to replace the income they depend on from you. At its most basic, Life insurance may help you keep your final expenses from being a burden on those you leave behind.

Reasons why you might need Life insurance

Income ReplacementThough not a pleasant thought it's important to think about this: when you die, who will you leave behind? If your answer is a spouse or children, then consider how they will survive without your income. The mortgage will still need to be paid; other bills will still come due; then there are your kids' college plans.

Bottom line: Most things that your income currently pays for or helps to pay for won't go away if something happens to you.

One solution: You may want to consider Life insurance - an effective income replacement tool.Although there are several methods available to determine replacement needs, you may want to consider using a multiple of your current salary. A Farmers insurance agent can work with you so you can determine what suits your individual situation.
Consider your individual situation

Some of the factors that may influence how much coverage is appropriate include:

• Your specific age and income 
• Your marital status; if married, your spouse's age and income 
• The number and ages of your children; whether any of them have special needs 
• Projections for your children's future education expenses 
• Your family's cost of living 
• How much savings you have in place 
• Your debts 
• Charitable giving goals if any 

To help fill the gaps in retirement
Interestingly, Life insurance can be a useful tool for many individuals and families who are approaching retirement as well as for those who are already retired.

Most of us buy Life insurance to replace the loss of income that would occur should we die or to create an estate for our loved, but there are many other reasons:

• You have an aging parent or disabled relative who depends on you for support 
• You have a large estate and expect to owe estate taxes 
• You own a business and have a partner 
• You have a substantial joint financial obligation, such as a personal loan for which another person would be legally responsible after your death 

Many retired couples depend on Social Security and pension income to survive. When one spouse dies, those payments may be reduced - survivor benefits are often much lower than retiree benefits - while many of the ongoing expenses remain for the survivor. You can help protect your surviving spouse from this reduction in income with Life insurance. The death benefit can replace your missing income so a personal loss does not become a financial one as well.

Changes in your life
It's a good idea to review your Life insurance needs annually - more often if significant changes or life events occur. Here are some major life events that might trigger the need to re-evaluate your life insurance coverage:

• The birth or adoption of a child - Would there be enough income to pay for day care, college, and everything in between if something were to happen to you or your spouse? Life insurance may help you answer "yes" to these questions. 

• Change in marital status - If you're newly married or just getting married, you probably share many dreams for the future - you also share each other's financial obligations. If one of you were suddenly removed from the picture, would the surviving spouse have enough money to cover final expenses, eliminate debts such as credit card balances and car loans, and buy some time to adjust to a new way of life? If one of you were to die prematurely, life insurance may help ensure that these needs will be met. If you're on your own now, whether through death or divorce, you may want to reassess your overall financial situation, including your life insurance needs. It's almost like starting from scratch again because being on your own will likely affect just about every financial calculation you can think of. 

• Home purchase - If you and your spouse recently purchased a home, there's a good chance you acquired a mortgage as well. Could your spouse manage the mortgage payments without your income? What about property taxes, routine maintenance, utilities and unforeseen repairs? How long would your spouse have before your dream house was up for sale? Life insurance coverage may help keep the family you love in the home they love.

• Job change - If you recently changed jobs, a salary increase may have come with it. You may not realize it, but when your income increases, your spending tends to increase too. If something were to happen to you, you'd probably want your family to be able to maintain their new and improved lifestyle. That's why it's a good idea to reassess your life insurance coverage whenever your income rises. 

• Planning for college - College costs continue to increase so you may want to begin your college savings efforts sooner. Having a regular savings strategy is just one part of a balanced college funding plan. You may also want to consider a smart risk management strategy to help ensure that your college savings goals will be achieved even if you're not there, and that strategy may include life insurance coverage.

Robert Cardenas is the local agent in Round Rock, TX

Farmers can help
If you haven't completed a Life insurance income replacement analysis, or if any of the life factors discussed above have changed, call your local Farmers agent. They can work with you so you can make sure you have the coverage you want. You can't guarantee that you will always be around to provide your family with an income, but you can help ensure your family's financial security should something happen to you.