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Life Insurance coverage is the foundation of almost everyone’s financial plan – but not everyone will require the same coverage. Your situation, obligations, priorities, and your future needs are unique to you. As a result, your life insurance policy should reflect that. Frankly, if you purchased life insurance years ago and from an unprepared agent,  it may be that occurred before other events that have now happened in your life. Such as, before you owned a house, had children, or started a new job, with or without a retirement plan. And, while Your employer may offer a group plan for life insurance, group insurance is Not a plan that can make a difference in your life and may even sell your family short. 

What is the Proper Amount of Life Insurance For You?

There is no simple formula that can answer that question. For many people, buying a life insurance policy is a smart move that will ensure financial coverage for family and loved ones. How much life insurance you need will vary based on personal and financial circumstances, but essentially you need enough to replace your income and cover your dependents' expenses, including future ones. 

However, simply multiplying your income by a certain number doesn't provide a complete estimate of how much your family will need. And if you're a parent, you likely need life insurance even if you don't work outside the home and earn an income. You should have enough coverage in that case to cover the cost of services you provide the family for free, such as child care.

5 Question to Consider Before Deciding How Much Coverage You Need

  1. How much money would your family need today to live on if you didn't make it home from work?

  2. What assets do you have now?

  3. How much debt are you carrying?

  4. Do you have a stay-at-home spouse?

  5. Have you factored in additional expenses unique to your situation?

  6. Do you have a pension or a qualified retirement plan?

  7. Do you own Healthcare benefits for critical or chronic illnesses?

  8. Have you maxed out your IRA?

  9. And, yes, so much more! 

These are just some of the questions to consider when estimating how much life insurance to buy. By doing a bit of homework and with a solid set of numbers in hand, Financial 411 can help you determine the best policy type for your family.  Schedule your complimentary 15-min Strategy Session Today! 

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