When people think about getting life insurance one of the first questions that comes to mind is how much they should get. Most people feel intimidated by the entire process of what kind of insurance to buy and how much coverage they need. Fortunately, there are some easy ways to calculate how much life insurance is a good fit.
Perhaps the simplest way to determine the amount of financial coverage you will need from life insurance as a policyholder is to buy a life insurance policy that’s equal to a certain multiple of your income, such as five, seven or 10 times your annual salary. You can also start with a multiple of your income and then add your household debt, or $100,000 per child, to reach an appropriate death benefit.
Another quick and easy way to get a figure is to use an online calculator. There are many insurance companies that provide free insurance calculators on their websites. Usually all you have to do is fill in a few details such as any debt, expected college plans and children to provide a more exact figure for life insurance needs, this will render an estimation of how much life insurance you may need.
For some people it may be a good idea to seek advice from a financial advisor. A financial advisor can take a holistic look at your finances, available resources and family goals before making a personalized recommendation for life insurance.
Using one of the methods mentioned above can help you determine the appropriate death benefit and avoid paying for coverage you don’t need. Having have a good idea of the amount of coverage you may need will give you more confidence when you go shopping for life insurance.
For the best advice on life insurance you should make an appointment with an insurance professional who can explain it to you and help you figure out what’s best for you.
