Bednar Financial Group: What You Should Know About Life Insurance


By on June 12, 2019

How much Life Insurance do you need? It’s not always easy to know.  At Bednar Financial Group, they can help you determine what’s right for your situation.

As Kevin Lamson of Bednar Financial Group points out, “If you have loved ones, you likely understand the importance of life insurance. Choosing the appropriate type of life insurance for your situation is important, but choosing the appropriate amount may be the most crucial decision you make.”

There are two rules of thumb for financial consumers to make the determination and figure out their potential needs. You can use a simple multiplication of annual income replacement or a more customized and personal solution. The first way is to simply multiply your estimated annual income by a factor, usually between 6 to 12 times your annual income. This formula is not exact, but offers an easy way to calculate for income replacement.

The second option is to customize it. The more exact way to figure out your needs is to use projections. Take your annual income and subtract income that would replace it, such as a spouse working and any Social Security benefits. Subtract this added income from your current income to find the annual deficit.

You should also plan to include and review your expenses, especially large ones such as a mortgage, childcare, and college costs. Then subtract your replacement income from these expenses. Multiply any projected annual income deficit or annual net expenses by the number of years you need to make up the shortfall and you have a better idea of how much you need.

“Either way, using a simple income replacement times rule or a more detailed approach, you should have a better understanding of your situation to determine the appropriate amount of insurance need,” says Lamson.

It’s also important to update your will. Having an up-to-date will is one of the most important planning steps you can take in life. Through a will you can name legal guardians if you have minor children. You can direct who receives your assets after you pass as your beneficiary. You can also designate an executor who would help distribute assets.

Having a will may help to prevent any future misunderstandings and make sure that your directives are taken care of. So if you haven’t had a chance to review your life insurance lately or if you need help with planning, the professionals at Bednar Financial group can help.

Bednar Financial Group has been providing sound financial advice for more than 50 years. With the help of a professional team, you can make the best choices for your stage of life. For more information and guidance with your financial future and planning your investment and insurance needs, contact Bednar Financial Group at 717-435-8350 or check the website at


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