State Farm Agent Ed Underwood Asks ‘How Much Life Insurance Does Your Life Need?’

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Ed Underwood, of State Farm, in light of a January 5, 2016, Forbes article about what one absolutely needs to know about life insurance, lists the top five questions to consider when deciding how much life insurance a person’s family needs right now.

Ed Underwood, State Farm Agent

It is imperative to make sure your family’s future is everything it can be, no matter what the future might bring, which is why life insurance is essential.

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According to the Forbes article, life insurance is one of the pillars of personal finance, deserving of consideration by every household. However, the article further states, despite its nearly universal applicability, there remains a great deal of confusion and skepticism regarding life insurance, but if anyone relies on you financially, you need it.

“It is imperative to make sure your family’s future is everything it can be, no matter what the future might bring, which is why life insurance is essential,” said Ed Underwood, who has over 36 years’ experience as a State Farm Agent. “However, a life insurance policy is only as good as the insurer’s ability to pay.”

When considering how much one’s family will need right now, and how long they’ll need it, Underwood suggests asking the following five questions:

No. 1: How much of your income would your family need each year if you weren’t around to provide for them? “This needs to be determined before even purchasing life insurance,” said Underwood.

No. 2: How long will your family need this income? Five years? Ten? Indefinitely? Since every family has their own unique financial needs, adds Underwood, sometimes the 5-to-10-year salary rule is not used.

No. 3: If you select “indefinitely,” what interest rate would you like to earn on your savings? Although each situation is unique, the maximum interest rate is always desired.

No. 4: How much would you like to allot for final expenses? “According to the National Funeral Directors Association, the average total cost of a funeral with burial services is between $7,000 and $10,000,” said Underwood. “The average cremation costs between $2,000 and $4,000.”

No. 5: How much would you like to allot for children’s education? In its most recent survey of college pricing, the College Board reports that a “moderate” college budget for an in-state public college for the 2015–2016 academic year averaged $24,061, while a “moderate” budget at a private college averaged $47,831.

About Ed Underwood, State Farm Agent
State Farm has been offering life insurance since 1929. In addition to life insurance, State Farm Agent Ed Underwood offers auto insurance, home and property insurance, health insurance, banking products and annuities. For more information, please call 615-771-0700, or follow Ed on Facebook. The office is located at 206B Cool Springs Blvd., Suite 208, Franklin, TN 37067.

About the NALA™
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