How much life insurance do I need?

What You Need to Cover Through Life Insurance

The “right amount” of life insurance coverage can be determined by considering everything you currently pay for and what you would need to pay for in the future. This can seem like an overwhelming question, so we’ve broken it down into a few basic categories for you.

Expenses, Debt, and Liabilities

Start by taking into account your existing expenses, any potential future expenses (such as the cost of raising a child), and current debt and liabilities. You want to make sure your beneficiaries and dependents who currently rely on your income for some of these costs are able to maintain any outstanding payments while continuing to live without worrying about a potential financial burden.

Dependents & Their Educational Expenses

Whether it’s the cost of raising a child or paying to support an aging parent, these are realistic expenses that most people face. When considering the amount it costs to raise a child, think not only everyday expenses but also the potential cost of college.

Future Savings and Final Expenses

When you’re looking for a life insurance policy, it’s important to consider how much support you’re currently providing for your family. From groceries and medical expenses to family vacations and utilities, it’s important to have a realistic view of how financially dependent your loved ones are. Additionally, it’s important to consider the cost of final expenses. The average funeral can be around $10,000, which can be an additional burden to a family without life insurance coverage.