How Much Life Insurance is Enough

Life insurance is a crucial step in planning for your future. Not only can life insurance fulfill promises made to your family if you are no longer around, there are several life insurance policies that provide benefits while you are living.

How much life insurance is right for you?

Our team understands the life insurance needs of our customers.

As a “Rule of thumb” it is suggested that an individual purchase an amount of life insurance equal to 7 to 10 times their annual earnings. However, many factors should be taken into account when determining the right amount of life insurance for you and your family.

Important factors include:

• Income sources (and amounts) other than salary/earnings
• Whether or not you are married and, if so, what is your spouse’s earning capacity
• The number of individuals who are financially dependent upon you
• The amount of death benefits payable from Social Security and from an employer-sponsored life insurance plan that are available
• Whether any special life insurance needs exist (e.g., mortgage repayment, education fund, estate planning need, etc.)

Calculating the correct amount of life insurance to buy is not as simple as it appears. We recommend contacting us for help determining the right amount of coverage. As independent agents, we are unbiased advisors that will help you avoid buying too much, show you appropriate optional coverages for your needs and recommend a company that will best serve your interests.

How do I know if I need life insurance?

Generally, you should consider life insurance if:

• You have a spouse
• You have dependent children
• You have an aging parent or a physically challenged relative who depends on you for support
• Your retirement savings are not enough to insure your spouse’s future against a rising cost of living
• You have a sizable estate
• You own a business

There are benefits of life insurance other than providing for your loved ones in case something happens to you:

• The cash value earned and borrowed from a permanent life insurance policy can be used to help with large expenses, such as a college education or down payment on a home.
• The growth of a cash-value policy is tax-deferred — you do not pay taxes on the cash value accumulation until you withdraw funds from the policy.
• Life insurance can be used to cover funeral expenses and pay estate taxes — consult your tax advisor agent for more information.

The right coverage for you is unique – talk to us today to find out how to protect your family and your future with the right life insurance for you.