Why Most of You Should Take Out More Life Insurance (Yes, Really!)

Let’s talk about life insurance. I used to sell it, so I know how important it is. Personally, I have a million-dollar policy, and if something happens to me, it all goes to Simon, my autistic nephew who depends on constant support. To make sure he has the best life possible, I decided he should inherit everything — my savings, investments, and my life insurance. He’s the sole beneficiary of all my assets, and that’s not going to change. It’s my way of ensuring he’s taken care of, no matter what happens.

I’ve dealt with a lot of health issues over the years, and I know what it’s like to wonder, “Is this my last day? Will I see another sunrise?” When my health began to decline, my thoughts were consumed by him. He was the sweetest baby, with red hair and those bright green eyes. I even had the honor of naming him. In my heart, I think of him as my star child — always shining, always there, no matter what.

I know, it’s one of those topics no one wants to think about — like taxes, or what happens when your pet swallows something weird — but it’s important. Most of you reading this need to take out more life insurance. That’s not a suggestion; that’s a recommendation backed by the reality of the modern world. And if you’re not thinking about leaving a big chunk of it to your wife and kids, well, you’re doing them a disservice.

Why You Need More (Way More) Life Insurance

You might already have a policy, maybe through your job or one you set up years ago, but I’m here to tell you: it’s probably not enough.

The average life insurance policy is around $250,000. That might sound like a nice chunk of change until you factor in a mortgage, college tuition for the kids, everyday living expenses, and then the unpredictable future. Life keeps rolling on after you’re gone, and it can get expensive — fast. If you want to make sure your family doesn’t just survive, but thrives without you, you need to aim higher.

We’re talking at least a million dollars, maybe even two million. It’s not about spoiling anyone; it’s about ensuring their future is as stable as possible. That way, your wife doesn’t have to scramble to make ends meet or worry about selling the house to cover expenses. Your kids can go to college without taking on crushing debt. Life can move forward smoothly.

What Happens If You Don’t Have Enough Coverage?

If your life insurance policy isn’t substantial, your family might be stuck dealing with a financial mess on top of the emotional turmoil of losing you. It’s one thing to grieve, but it’s another to grieve while also navigating financial hardship. Trust me, that’s not a situation you want to leave your loved ones in.

Think of it like this: Life insurance is your final love letter to your family. It’s the one last act of care and consideration that tells them, “I’ve got you, even now.”

What’s the Right Amount for You?

The actual number depends on your situation. Are you the sole breadwinner? Do you have debt? How many kids do you have, and how old are they?

A good rule of thumb is 10 to 12 times your annual income. That should give your family enough to cover living expenses, debts, and future costs like college, healthcare, and retirement. If you earn $100,000 a year, that means you should aim for a policy of at least $1 million. If you make more, adjust accordingly.

What If You Don’t Have a Life Insurance Policy?

If you don’t have life insurance at all, this is your cue to get on it ASAP. It’s one of those “adulting” moves that can make all the difference for your loved ones. Don’t wait until it’s too late to secure their future. Policies are generally cheaper when you’re younger and healthier, so the sooner you lock one in, the better.

Who Should You Leave It To?

It’s pretty standard to leave the bulk of your life insurance to your spouse. This makes sure they can keep things running smoothly and continue the life you’ve built together. If you’ve got kids, consider setting up a trust to manage the money for them, ensuring their needs are met as they grow older. You can set specific guidelines for how and when the money is used, giving you peace of mind that it’s being managed responsibly.

Don’t Wait

If there’s one thing I want you to take away from this article, it’s that you need more life insurance. And if you don’t have any, you need to fix that — stat. Your family’s future depends on it. Ensuring they’re taken care of, no matter what happens, is the best gift you can leave behind.

Now go out there and get covered. Your future self (and your family) will thank you.