Life insurance is a policy that we all need in order to financially protect our loved ones in the event we pass away unexpectedly or otherwise.
Deciding how much life insurance you need is a question that many people have a hard time asking. Most experts would agree that you should have at least ten times your annual salary. But can simply multiplying it by five be enough? While any life insurance is better than no life insurance, the purpose of life insurance is to protect your loved ones from financial turmoil and is not as easy as replacing your annual income when you have children, a mortgage, student debt, and other day-to-day expenses. Here are a few tips you can use to help you determine how much life insurance you should purchase to fully protect your family in case of your unexpected death.
What should life insurance cover?
In order to understand how much life insurance you need, you have to know what it has to cover.
- Mortgage
- Student loans
- Car payments
- Any other form of significant debt
- Replace your lost income if you family is dependent on it
- Pay off unpaid medical bills
- Cover future tuition for the children
- Cover all funeral costs
- Create an inheritance for your loved ones
How to determine how much life insurance you need?
Once you have an idea of what life insurance needs to cover in your life, you have to use basic arithmetic to understand how much–monetarily–each one of those facets costs. Add up everything and aim for that number–at least, if not higher. That way you can secure the financial security of your family and loved ones.
To learn more about life insurance and what it can do for you, contact Donald Weiss Insurance Services. Our dedicated team will help you determine your coverage needs, helping you pick the right policy with the right term for your goals. Don’t be left with questions when buying this essential coverage; call us today!