Insurance Analysis

Life Insurance-How Much do I Need?

Your family's well being is paramount and in your absence you want to ensure that they are properly looked after. This requires some advance planning and information about life insurance policies in general.

Life insurance in any amount is a good way to help provide for your family, but how do you determine how much you need to purchase? Your family budget comes in handy. If you know what your family's monthly income needs are, then it will be easier to determine how much coverage you require, and which insurance plan will maintain your family's standard of living in the event of your death.

A good measure of how much insurance to buy is your income. Insurance experts recommend purchasing a policy that is based upon six to ten times your annual salary. Remember, the purpose of life insurance is to replace income.

When considering how much life insurance you require, make note of your annual income, the term you wish for your coverage (in years), the rate of inflation and the rate of return on your premium investments.

Most life insurance policies fall into one of three major categories: Term Life, Whole or Permanent Life, and Universal. Call us today for more information!