|
|
How much term life insurance do I need?
This is a very common question, but one without a simple answer. Everyone is concerned what would happen in the event of their premature death. However everyone's situation is unique, and will change throughout the course of your life. Children, goals, assets and liabilities all have a great affect on this.
The standard answer is 5-10 times your annual income, but that is just a general guideline. There are a number of other factors to consider, such as what the money is needed for: income replacement, pay off mortgage, college tuition, and any other debts you may have. This is just a small list of some of the things to take into consideration to help you determine your needs.
The most standard need is income replacement, providing family members money for them to live. This involves considering how much they will need per year and for how many years, as well as the interest they will earn and inflation. This can also be partly offset by your current assets.
Also take into consideration any special needs of your family and any burial and estate costs that may be incurred. There are some different strategies that you can use to cover your needs, please make sure to go over your concerns with your agent.
Also be sure to use our calculator to how much term life insurance you will need for income replacement.
|
|
|
