How Much Life Insurance You Need
Life insurance, unlike most other insurances, is not actually for your benefit but is for your loved ones. Investing in life insurance is one way to show your family that you love them and care about their well-being even after death.
Life insurance may seem like a hassle to pay for, but you never know when you might need it, so it is best to be prepared.
Start With Your Income
Before getting life insurance, you should first figure out how much you need so you aren’t paying more than you need to. The first thing to consider is how much income you make and how often you are paid.
Then, review your budget and assess whether your family is able to live off of your income alone. If you were to pass away, would your partner be able and willing to work for more income? Would this cover the needs of your family? If they were not able to work for more income, you should try to have your income amount available for your family through life insurance. When it comes to figuring out how much life insurance you need, a good rule of thumb is an amount 10X your annual salary.
This is a great place to start, you may feel you need more or less, this will get you in the ballpark when you figure out your needs.
Think of Immediate Expenses
When someone first passes away, there are many initial expenses. For example, your loved ones will have to take care of a funeral or memorial. Funerals tend to include the casket whereas memorials don’t.
You can decide now which type of ceremony you would like to have and determine how much that would cost. You can ensure through life insurance that your loved ones have enough money immediately following your death to care for pressing issues without going into debt.
You may have heard of or personally experienced having to fully or partially pay for a loved ones funeral expenses because the deceased did not have any life insurance. Losing a loved one is hard enough without having to shoulder the financial burden it places on family members. At the very least a person should have Final Expense insurance, a form of life insurance, to cover costs associated with funeral costs. To run a quote use the form below:
Think of Your Dependents
When you are planning your life insurance, and hoe much life insurance you need, you need to think not only of your dependents’ immediate needs but also of their future needs. If you have young children now, they may not be in expensive schools yet, but they could end up going to pricey universities later on. You can use a life insurance calculator to help determine what their immediate and future financial needs would be.
Make sure when you are determining how much life insurance you need that you are thinking about all possible future needs of your family. You cannot determine how or when you will pass away, but having life insurance can ensure that your loved ones are taken care of when you do. After doing some research, you can also talk to an insurance specialist or professional to get their opinion on how much life insurance you need.
If you need assistance in figuring out how much like insurance you need, please reach out to us here at TCG Insurance Solutions and we can guidance to help insure your loved ones. You can also use my exclusive life insurance quote tool below:
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