How do I know how much Life Insurance to purchase?
Answer:
Your life insurance needs depend on a variety
of factors. One of the main factors to consider is if you have dependents who rely on your income. If so, life insurance can replace that income should you die.

To figure out how much life insurance you should purchase, you must first take a solid look at your financial situation and figure out how much money is needed to sustain your household. In addition, you should also consider future expenses such as college for your children.

Next, factor in all of your debts including your mortgage, other loans, and funeral costs as well as your assets and other benefits your survivors might be entitled to. Consider your spouse’s income as well.

Once you’ve gathered the financial information, figure out how long your family will need the life insurance proceeds. If you have young children, it could be twenty years before they’re grown up and on their own. If your children are already approaching college age, you might not need as long a term.

Now, figure out how much money your family will need over the term and determine how the loss of your income will affect their needs. Purchase enough life insurance to fill this gap.

We have an easy to use calculator to help you identify some of your life insurance needs .  Please note, the calculator is not perfect, we always recommend you talk to your insurance agent.
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