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How you know how much life insurance to buy.
If you’re not sure how much life insurance you need, you’re not alone.
On one hand, it’s important to buy enough coverage so your family is taken
care of. On the other hand, you don’t want to pay for insurance you may
not need. Before you select a policy, ask yourself some of the questions
below.
If you’re wondering how much life insurance to apply for, here are a
few things to think about:
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Your income.
If your family ever loses you, they’ll lose your income as well,
and the support it provides. Think about the amount of money you contribute
to your household—including anticipated increases and money you set aside
for important goals—and you’ll get an idea of how much life insurance you’ll
need to replace it. |
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Your work benefits.
Your employer-provided benefits are just as valuable as your
income. When deciding how much life insurance you need, don’t forget to take
things like the cost of health insurance, and 401k matching into account. |
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Your chores, errands and labors of love.
Think about it: There are lots of them. There are the big things
you do for your family—like caring for your children. And the little
ones—like mowing the lawn or painting the kitchen. It’s important to take
count of all the ways you make your family’s life better, to help ensure
they’re taken care of after you’re gone. |
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