Help protect your family’s future. Enter your zip code to get your free quote today!

Get Your Free Quote

Determining Your Life Insurance Needs

In order to know exactly how much life insurance you will need, you must first determine what your loved ones will need in order to maintain their current standard of living in the event of your death. Here are some things to consider before deciding on a dollar amount for your policy. 

Meeting Your Obligations

Start by figuring out what the death benefit would need to cover if your earnings stopped. What would it cost to meet your obligations to loved ones? Consider the immediate financial impact of your death as well as the ongoing and long-term expenses to be met without your income stream.

The immediate expenses would include your own funeral costs, as well as mortgage payments, utilities, childcare, and more. Your long-term responsibilities might include your children’s college education and your spouse’s living expenses. 

Calculate these costs as best as you can and boost the amount just to be on the safe side. After all, there may be much that you haven’t thought about or have underestimated. With this figure on paper, you can start subtracting your savings and investments, your spouse’s retirement funds, and other insurance policies that might help buffer the impact. The tally can be further reduced if your spouse works. 

Your final figure, your expected expenses minus your current and future liquid assets, will help put your life insurance needs in proper perspective.

Multiple Policies

Perhaps there are two distinct periods in your life in which you foresee an added need for income protection. For instance, if you’re now the primary earning parent of a young family, you would need to get them raised and through college and into young adulthood. Then, once that period has passed, your surviving spouse might require income to meet living expenses and retirement needs.

Connect with an Agent

Call 1-800-966-7169 to connect with a licensed agent who can help you find a policy that will work for you.

----------

This is an advertisement for life insurance. 
Applications for life insurance may be subject to acceptance by insurer. Issuance of the policy may depend upon answers to health questions. Rates and coverage amounts depend upon the carrier selected. Your policy may be subject to underwriting approval. You will receive only the benefit amount in the policy issued.

Help protect your family’s future. Enter your zip code to get your free quote today!

Get Your Free Quote

Related Information

How Long Should I Get Life Insurance For?

How long should you have life insurance for? There are three key indicators that can help you determine the answer.

Read More

How Much Life Insurance Should You Buy?

How do I know how much life insurance I need? You can determine the figure by considering your debts, assets and income.

Read More

Calculate How Much Life Insurance You Need

Before purchasing life insurance, calculate how much money your family will need if you die unexpectedly. Learn how to evaluate your life insurance needs.

Read More

Think You Need Life Insurance? Use This Checklist.

Do you need life insurance? If you’re considering buying a policy, you should first read this primer on life insurance policies.

Read More

Do You Have To Have Life Insurance With A Mortgage?

You aren't required to have life insurance to get a mortgage, but having a life insurance policy while you are making mortgage payments could be beneficial.

Read More

Who Needs Life Insurance?

Here are some guidelines to help you determine if buying a life insurance policy is the right choice for you.

Read More

Do I Need Life Insurance?

If there are people who depend on you financially, it may be time to start thinking about buying life insurance.

Read More

Who Has the Greatest Need for Life Insurance?

The people who have the greatest need for life insurance are those who have dependents. Learn how term life insurance can help.

Read More

Why You May Need Term Life Insurance

Term life insurance can provide peace of mind that your family will be protected in the event of your death. Learn more in this article.

Read More