Do You Have Enough Insurance? Understanding the Right Coverage for Your Income

Financial Horizons: Insights for Building Wealth and Securing Your Legacy

Do You Have Enough Insurance? Understanding the Right Coverage for Your Income

By Dr. Jose G. Cardenas, Chief Tax Strategist at The C & R Group, LLC

When it comes to protecting your loved ones, “enough” life insurance is more than just a guess — it’s a financial calculation that determines whether your family can maintain stability in your absence. A good rule of thumb is simple but powerful: aim for six to ten times your annual income in life insurance coverage.

Here’s why that number matters — and how it can make the difference between security and struggle.

1. Income Replacement for Your Loved Ones

Your salary doesn’t just pay bills — it funds your family’s future. Mortgage payments, car notes, groceries, education, and even retirement contributions all depend on your earning power. A policy that replaces 6–10 years of income allows your loved ones to maintain their standard of living while they adapt financially and emotionally.

2. Protecting Against Inflation and Future Expenses

Inflation is the silent thief of financial planning. What seems like enough coverage today could fall short a decade from now. A larger policy cushions against rising costs and unexpected needs like healthcare, tuition, or caregiving expenses for aging parents.

3. Covering Debts and Final Expenses

If you have outstanding debts — a mortgage, personal loans, or business liabilities — life insurance ensures those obligations don’t pass to your family. It also covers final expenses such as funerals, which can easily exceed $10,000, sparing your loved ones from additional stress.

4. Securing a Legacy for the Next Generation

Life insurance isn’t only about protection — it’s a wealth-building tool. Many policies can help you create generational wealth, especially when paired with Indexed Universal Life (IUL) strategies that offer tax-advantaged growth, flexible access to cash value, and lifelong coverage.

5. The C & R Group Advantage

At The C & R Group, LLC, we take a personalized approach to evaluating your insurance needs. Through Expert Financial Analysis (EFA) and strategic tax planning, we ensure your coverage complements your broader wealth strategy — helping you protect, preserve, and grow your financial legacy.

For a deeper dive into optimizing your life insurance plan, visit:
👉 www.thecrgroupllc.com/blog

Ready to ensure your family’s financial security?
📅 Book a consultation with Dr. Cardenas

About the Author:
Dr. Jose G. Cardenas is a retired U.S. Army Finance Officer and the Chief Tax Strategist at The C & R Group, LLC. With a Doctorate in Business Administration and over 20 years of experience in financial strategy, tax planning, and life insurance, Dr. Cardenas helps individuals and business owners protect their wealth and build a legacy. Learn more at www.thecrgroupllc.com.

📌 Disclosure:
This article is for educational and informational purposes only and is not intended to serve as personalized legal or investment advice. Dr. Jose G. Cardenas, DBA, provides tax advisory services through The C & R Group, LLC. Insurance strategies, including Indexed Universal Life (IUL) and annuity products, may be offered through his role as a licensed financial professional affiliated with Experior Financial Group.

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