You probably already know you need life insurance, but what you likely don’t know is exactly how much life insurance you need. Every person is different, and therefore, how much life insurance you need will depend on many different factors.
Typically, we suggest looking at four different areas when calculating how much life insurance you will need:
- Debt—Besides your mortgage, add up how much debt you have. You should also estimate how much you intend to spend on funeral expenses after you die.
- Income—Determine how many years your family would need financial support if you passed away. Then, multiply your yearly income by this number.
- Mortgage—How much money would you need to completely pay off your mortgage?
- Education—If you have younger children, estimate how much it would cost to send them to college and take care of their other educational needs.
Adding all of these figures together can give you a well-rounded view of how much life insurance you need. And although looking at each of these factors is relatively comprehensive, doing it this way doesn’t account for other savings and forms of coverage you already have.
We can look at your finances and personal situation and provide recommendations about how much life insurance you should purchase. We are always honest and only care about doing what is right for our clients at Coventry Asset Protection. Contact us today to learn more!