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Memphis, TN 38120

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What Factors Should Be Considered When Determining How Much Life Insurance A Person Needs?

 There are a number of benefits associated with purchasing life insurance. However, one of the biggest decisions that you need to make when it comes to purchasing a life insurance policy is deciding how much coverage you truly need. Here at Riskbusters Insurance, a company providing individuals in Tennessee with life insurance policies, we want to help you learn more about what factors you need to consider when determining how much life insurance is right for you. 

The Amount of Debt You Have

Anytime you are purchasing life insurance, you should consider how much debt you have. Ideally, your life insurance policy should cover the amount of outstanding debt you have, including student loans, car loans, and a mortgage. 

How Much Money is Needed to Ensure Your Family Can Live Comfortably

Another element to consider is how much money your family needs to live the same lifestyle they are accustomed to living if you pass away. Consider the number of children you have and their ages to determine approximately how long they will need financial support. 

What Your Final Expenses Will Cost

Lastly, you should always think about your final expenses and how much it will cost to bury or cremate you and have a funeral or a celebration of life. This helps to ensure your family has the money to cover the costs associated with your final wishes. 

We Are Here To Help

There are numerous factors that need to be considered when determining how much life insurance you should purchase. If you are looking to purchase life insurance in Tennessee, the team at Riskbusters Insurance can work with you to determine a reasonable amount of life insurance to help provide for your family when you pass. Schedule an appointment with us to start the process. 

Will Life Insurance Affect Medicaid Benefits?

If you’re on Medicaid, it’s essential to know how life insurance could affect your benefits.

Some people mistakenly believe life insurance policies will disqualify them from receiving Medicaid benefits. However, that’s not necessarily the case. Owning a life insurance policy may help protect your Medicaid eligibility — and your loved ones would receive death benefits if something happened to you.

Riskbusters Insurance serves the Tennesee area and can help you understand how life insurance will affect Medicaid eligibility.

How Medicaid Works with Life Insurance

Medicaid is a government health insurance program that offers coverage to low-income families and individuals. To qualify for benefits, applicants must meet specific financial criteria. For example, applicants must have an income below a certain level and not have more than a certain amount of assets.

One common question that people have is whether or not life insurance will affect their Medicaid eligibility. The answer to this question is no; life insurance won’t affect Medicaid benefits. This is because life insurance is considered an asset only if it has a cash value. Term life insurance and small whole life policies are considered contracts of pure protection and are not counted as assets. This means they won’t affect your eligibility.

However, if you have a more comprehensive policy and the cash surrender value exceeds the allowable amount, it will be counted as an asset and could affect your Medicaid eligibility. The asset limit in Tennessee is $2,000 in cash or non-exempt assets. Therefore, if your cash surrender value is less than the $2,000 limit, you’ll still be eligible.

Contact Us Today

To get life insurance coverage in Tennessee, call Riskbusters Insurance. Our agents can help you choose the right type of insurance for your situation and explain how it could affect your Medicaid benefits.


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