How Much Life Insurance Do I Need?
Mar 24 2020
It’s not an easy answer. Lifestyle, family status, income and goals all factor in to that decision.
Remember, you’ll need to think about how your family would get by without your income and the household tasks you usually do. Without you, would your family need to hire a lawn, snow or cleaning service? If you usually take care of the taxes and finances, could someone else take that on, or would they need to hire someone to do it?
Some companies offer employees low-cost or free life insurance as part of their benefits. But it’s often one to two times an employee’s annual salary, and if you’re the primary breadwinner for your family, that might not be enough.
The best thing to do is meet with your agent. We can ask questions you might not even think of – such as whether you want insurance to help you with your estate-planning goals.
In the meantime, check out this handy life insurance calculator from Life Happens, a nonprofit financial education organization. By considering factors like funeral expenses, debts and college funding for children, you can come up with an estimate of how much life insurance you may need.