Determine how much life insurance coverage is right for you.
Finding out how much life insurance you need is part art, part science. Most experts recommend about five to ten times your annual salary, which is a good place to start. Of course, this depends a lot on your lifestyle, salary, and plans for the future. While any life insurance is better than nothing, financially protecting your loved ones is usually not as simple as replacing your annual income when you have children, childcare expenses, a mortgage, and other outgoings that come up in day-to-day life.
Questions to ask yourself when shopping for life insurance.
Understand what you should factor in to your decision by asking yourself these questions.
- How will your spouse keep up with the mortgage and other housing expenses?
- Does your family have any debt?
- How much will childcare cost?
- Do you plan to pay for college?
- What does your family need to cover daily living expenses?
- Do you want to leave a legacy?
What can you afford?
Regardless of how much coverage you need, a critical financial consideration is how much life insurance you can afford. Besides budget considerations, it’s important to consider that missing payments can result in the termination of your policy. Then, you deal with having no life insurance at all, and possibly having to take out a new policy with a higher premium. Work with your insurer to be sure that you have suitable coverage for your budget.
While nobody likes to think of their own demise, it’s prudent to consider what financial ramifications your death could have on those you leave behind. The team at Kurt Rolf Insurance Agency can help secure the right life insurance for your family.
