Right now, your focus may be on saving and investing for your family’s future, but it’s also important to consider protecting your family in case something happens to you.

While you’re still working, one of your most valuable assets is your ability to earn income. Life insurance can help protect this asset and help ensure your family will have the financial resources to replace lost income or pay for certain expenses in case you pass away prematurely. If you have dependents and/or outstanding liabilities (like a mortgage), you may want to consider life insurance.

When deciding if life insurance is right for you, ask yourself the following questions:

• How much insurance do I need to provide for my family?
• What type of insurance should I consider?

How much life insurance do you need?

The key to determining how much insurance may be appropriate for your situation is to have a strategy to provide for your family. Using a needs approach, you can estimate your family’s expenses and savings needs over time using the acronym “LIFE”:

• Liabilities like your mortgage, car loans credit cards, etc.
• Income needs for your family to replace your future salary and cover ongoing living expenses, savings needs and an emergency fund
• Final expenses
• Education expenses for your child(ren)

Working with a professional can help you refine these estimates and adjust the amount based on other resources that may be available for your family should you pass away, including savings and investments, any existing insurance coverage (such as through your employer), pensions, potential government benefits and others.

What type of insurance should you consider?

Answering the following questions can help you determine which type of insurance may be appropriate for you.

• How long do you need the insurance? Will you need insurance only for a particular period of time – for example, until your children are grown? Or does it seem like more of a lifetime need?
• What can you afford? Balancing the amount of insurance coverage you need with what you can afford is one of the most important insurance decisions you need to make.

That’s why it’s important to work with a professional to determine the appropriate amount and type of coverage that fits within your overall budget. Reviewing your budget also can help identify potential expenses to reduce or adjust to address this need.

What makes sense for you and your family?

Ultimately, your decision should start with clarifying what you’re trying to accomplish. That will help you and your advisor work through which options may be right for you and choose the policy and the amount that’s most appropriate for your family.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor, Nicolle Lalonde.

Insurance and annuities are offered by Edward Jones Insurance Agency (except in Québec). In Québec, insurance and annuities are offered by Edward Jones Insurance Agency (Québec) Inc.