Hey, it’s Kyle, Hatchett Insurance and the question is why is life insurance important?
So a lot of reasons, but let’s start with some big ones. Main one is you’re going to have final expenses when you pass away and those are going to go onto your family. I mean funeral obviously is one of them, but then the main thing is unpaid debts and mortgage is probably the most important one here.
When you pass away, are you going to want your family to be able to keep the house or not? If so, then you probably just need to get a life insurance policy equal to the amount of the mortgage. So that’s a good starting point.
Also you’ve got to replace lost income so your family will be down one income earner, but will their expenses go down commensurately with that or is there going to be a difference that needs to be made up? So replace lost income and then also there are several business uses for it. Like if a business needs to replace a key person or fund a buy sell agreement, but for most personal uses, the main thing is mortgage and funeral.