How much Life Insurance should I buy or have, is one of the questions that I hear all the time. You will want to have enough Life Insurance that, if something happens, you will not be worried if your family can survive financially. There will be lots of stress on your family and loved ones if something were to happen to you. If you have looked at how much Life Insurance you need, at least they will not have to worry about having to find another place to live or changing their standard of living.
I have had to look at how much Life Insurance I should buy to protect my family as well. I have 4 children that depend on my providing for them. If something were to happen, my wife is not going to be able to go get a job to make up for the loss of income. Even if she could, I would rather know how much Life Insurance I need to protect my family by replacing my income until the kids are through college and are self suffient. Then my wife will be able to greive and be there for my children, who also need to have time to greive for the loss of a parent.
So what are some ways of determining how much Life Insurance you need?
1. How much (income do you make each year) * how many (years you want to replace income)
2. Annual income * (# of working years you have left)
3. Expenses and liabilities you want to cover, if you were not going to be here tomorrow to take care of them. ie: a child’s future college expenses, paying off student loans or paying of a homes mortgage
4. 20 times your current annual income
These are but a few of infinite possibilities, when it comes to determining how much Life Insurance you need. Following are some links to a few of the online Life Insurance calculators that I like to refer people to, so they can themselves determine how much Life Insurance they need.
As we get older, we all lose people in our lives that die sooner than they should have. If something does happen to you, you do not want to be asking yourself, “how much Life Insurance should I have”, because it will then be too late. Take action today and protect your family and those that you love. Know how much Life Insurance you want to have, and go get it.
As always, please let me know if I can help you in anyway. Steve