How Much Life Insurance Do I Need?
The most common question that we hear is how much life insurance do you recommend that we carry? There is no magic formula for determining what is appropriate. We like to say you should have enough insurance so that coupled with your existing assets your family’s world is not “turned upside down” at your death…that is from a financial perspective. Having said that, we have never had a beneficiary say they were paid too much.
Since no one knows how long you will live an easy approach is to consider the worst case scenario…you were to die today! You first need to calculate immediate cash needs for such expenses as paying off a mortgage, college costs and estate taxes, etc. You should be able arrive at a number fairly easily. The more difficult calculation is how much capital your family would need to replace all or a portion of your income? Does your spouse work? Will he/she continue to work after your death? Is there enough savings coupled with your spouse’s income to cover expenses? What is a realistic rate of return on assets? How long will your family need income? What other sources of income might they receive? How does inflation factor into the calculations? We can guide you through this process and help you arrive at an appropriate amount of life insurance that will make up for any deficiencies that might result from a pre-mature death.
What type of life insurance policy should I purchase?
This can be an overwhelming decision considering the vast number of different contracts available in the market. As an independent brokerage agency we are not tied to any one insurance company. Therefore we can not only choose the most appropriate product but also the most competitive carrier.
Life Insurance Policy Locator
Use this helpful website to find an old policy or use it to find out if your loved one had any policies when they passed away.
