BoomerGirl Diary

If you’re a boomer woman who doesn’t believe you have adequate life insurance protection, you are not alone. According to research published earlier in 2006 by LIMRA International, 44 percent of all U.S. householders (48 million) either don’t own life insurance and believe they should, or own life insurance and feel they need more.

Life insurance offers unique, basic and essential financial protection, and it can help put to rest uncertainties about the future well-being of those who depend on you. But when buying life insurance, it’s important to ask the right questions to find the right fit for you.

We recommend asking yourself these three questions as you evaluate your life insurance needs:

1. Do I need life insurance?

In general, if you have individuals or loved ones who are dependent on you, the answer is yes. Life insurance can help provide security against the loss of income for those who depend on you financially. For example, if you die, life insurance can help pay for the cost of your mortgage, your child’s college education or your spouse’s retirement. Various events in your life — including getting married or remarried, having a child or grandchild, buying a home — will have an impact on your life insurance needs.

2. How do I determine how much I need?

Identifying your goals helps here. For example, if you want to protect your family’s fundamental costs of living — including mortgage, rent, medical bills or college tuition — in the event of your death, your life insurance coverage should be adequate to cover all of your short- and long-term financial obligations. As you make these calculations, you should also take into account such factors as the loss of your future income, inflation and the rise in educational costs for your child. Many calculators are available on the internet to help determine your needs. One we recommend is www.massmutual.com/calculators.

3. How do I purchase life insurance?

Because matching the right insurance product to an individual’s needs and goals can be complicated, you may want to consider using the services of a skilled financial professional. To find an agent, ask for referrals from friends or family members, or visit the Web site for the Life and Health Insurance Foundation for Education at www.lifeline.org. Also, regardless of the agent you choose, consider buying life insurance from a company with strong financial strength ratings, as that may be an indicator of your insurance company’s ability to pay its claims in full.