Life Insurance – Asking how much you really need is a great question that can have more than one answer. Before deciding just how much life insurance will do the trick, it is important to know some factors that must be taken into consideration. One major consideration is to determine who in your family should be insured. Once everything is taken into account you can then look at what the amount that you will need to carry will be. Life insurance coverage should be evaluated at intervals during your lifetime. As circumstances and lifestyle changes take place then so does your insurance needs.
Determining Your Life Insurance Needs
To determine the amount of coverage that is needed for your particular circumstance look at the size of your family and the roles that they play. Are you the sole provider for the family or does the spouse/partner also provide for the family? How many dependents and what are the ages of those dependents is another factor that you must consider. Look at burial cost today with the cost ranging between $8,000 and $10,000. This is not a burden that you want your family to have. Consider any medical expenses that could be left as well.
As you can see there are multiple factors that should be taken into consideration. When looking at life insurance the general rule of thumb is to look at helping your family for the first seven to ten years while they adjust to the loss of your income. This may or may not be feasible because you also have to look at the cost of the life insurance premiums and how it affects your current finances.
Cost of Life Insurance
There are formulas that can be used to help you calculate your life insurance needs but remember these are not perfect and should only be used as a basic guideline. We can sit down with you and work up a plan that will meet your needs and that can fit into your budget as well. There is such a thing as having too much insurance especially when it means that the premiums are so expensive that they will not fit comfortably into your budget. Keeping your premiums manageable may seem like it would require a decrease in the amount of coverage, but never fear. We work with only the best companies and will help you the perfect policy.
Life insurance is just as important as other insurances because you don’t want to leave your loved ones with a hefty burden when you are gone. This type of insurance is based on individual or family needs when something unforeseen happens. The best way to determine how much life insurance you need is to sit down with your agent and spouse or partner and using resources that are available to make this determination. Remember that there are no canned answers to what will work for you and your situation.
Feel free to contact us here at The Hoffman Agency for more info on how we can help you find the best life insurance policy to fill your needs.
