How much life insurance Do I need?
This is a basic question that we hear when speaking with clients. Life insurance needs change from year to year and knowing the right amount to protect your family or loved ones can be a little overwhelming.
How do I want to be buried?
How many years of my annual income do I leave behind?
How much do I owe for all outstanding debt?
Do I want to cover any educational expenses for my loved ones?
There is a simple formula that the industry uses to figure how much you should get, and it’s not 10 or 15 times your salary.
Take the word LIFE and break it down by each letter:
L=Liabilities
I=Income Replacement
F=Final Expenses
E=Educational Expenses
Once you have identified this number, we find a contract with an insurance company to cover that number.
The next thing to do is determine which type of contract will best protect your situation, but that is a discussion for another blog.
For now, figure out your number and give me a call if it looks like you might need to increase it. We can talk about options to solve your situation.
