How do you end up in financial distress? There are many reasons, and, when it comes to facing a potential bankruptcy, very often the biggest triggering event is a medical crisis or a divorce. But there are smaller factors that can add up to your finding yourself in a big crisis. This is the eighth in a series on what one bankruptcy attorney identifies as the “Top Ten Personal Financial Mistakes” people make. His list is useful for all of us to review and consider, and his posts link to helpful resources available on the web. Be sure to click on the link below to his post and check out the resources he provides, too.
Here’s an excerpt from the series by Eugene S. Melchionne, Connecticut Bankruptcy Attorney at www.bankruptcylawnetwork.com.
You can have too much life insurance, but it is also a mistake to not have enough. There is a fine balance to the amount of life insurance you need.
How do you know when enough is enough?
I think of life insurance as something you do — if you do it — to help the people you care about when you die. Would they be stressed if they felt they were responsible for your bills (even if they are not)? Do they depend on your living income for their wellbeing, and do you want to help ease the transition to some other level of living by assuring there is some money available at the time you die? Even if it’s a small amount, it might help them handle the reality of your death better, but giving them a little ease.
Earlier posts in the series: Failing to Live With Direction, Living Beyond Your Means, Borrowing Money With Credit Cards, More on Borrowing From Credit Card Companies, Having No Emergency Fund, Failing to Save for Long-Term Needs, Failing to Accept Free Money