How Much Life Insurance Do I Need?
These are vital points to consider when determining how much life insurance you need and provides a needs analysis calculator to assist.
When you are buying life insurance, it's important to get the correct amount. Not having enough, you could leave your loved ones in a challenging financial situation. Getting too much, and you will pay for coverage you will not need. This is an overview to think about when calculating your life insurance needs.
Is anyone besides you relying on your income right now for living expenses? Perhaps your spouse or your children? If you died tomorrow, they no longer have your paycheck. That's why the first item you consider is income replacement. One easy method is to determine how much money your loved ones need each year and multiply that the number of years they need it. For example, this could be the total years until your children become adults.
If you have any outstanding debts, you likely want your life insurance to cover these expenses as well, so they don't fall on your loved ones. Consider the remaining balance on your mortgage, credit card debt and any other types of debt. You may also want to add some extra money for this category to cover the cost of your funeral and other final expenses.
Total available funds
What do you already have saved? You may already have some of your needs covered. In which case, you can subtract that amount from your life insurance needs. If you have any income other than your salary - dividends from stock as an example - you can also count those as you look to offset future obligations. And remember to include the face amount of any life insurance policies that you already own or have through your employer since these may payout at your death.
Now that you've outlined the basics, you have a solid starting point. There might be other items to consider. Talk over your calculations with your family - and perhaps even an investment advisor - to make sure you haven't overlooked anything. Then you're ready to select a policy that's right for you.
Now that you know how much Insurance you may need, Now Let Us See How Much it Costs!
If you like the price and feel comfortable with the amount, you can apply online or just give me a call at 606-224-2406.