Life insurance is a tricky thing, especially if you have no idea how much you need. You do not want to purchase too much or too little. Every person is different so there is no magic number. Luckily, there are some easy ways to determine a great ballpark figure for the right amount of life insurance needed for you. Answer these questions to help figure out how much you need.
- Do you have debt? This is a big thing to take a look at because if you pass away and you have debt, it will likely be handed over to a family member to take care of. This is a burden you do not want to give to anyone. If you have debt, figure out how much so you can account for it in your life insurance policy.
- Are you financially responsible for the care of anyone? This is important because if you have someone such as a child, parent, or spouse who relies on your income for care, you need to make sure there is enough set aside for them to live comfortably until they can get back on their feet and take care of themselves.
- Have you considered funeral costs? Funerals are not cheap and whether you get buried or cremated, it can still cost a lot. If you have not already saved for this expense, then you may want to consider it so that the burden does not fall on a family member. Consider adding this cost to your life insurance so it can come out of that money instead of someone else’s hard earned money.
If you still have questions or would like to get a quote for life insurance, please contact us at Don Allred Insurance today.