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080522 How Much Life Insurance Do You Need?

The amount of life insurance you need depends on why you need the insurance.

 Be sure to keep these factors in mind when thinking about

How much you need.

 

* Enough to Support Your Family

People with dependents are often advised to purchase a life insurance

Policy equal to a multiple of their salary. This rule of thumb is a quick

Way to come up with an amount that will provide a few years of

Replacement income, but it’s smart to use this rough number just as a

Starting point. Then, be sure to take a deeper look into how much your

dependents will need.

 

Think about how much other income they will be able to count on.

How much non-salary income from your employer will be lost when

You die? That could include things such as health insurance subsidies

Or retirement contribution matches.

 

* What Your Heirs Need for Your Business

If you’re buying insurance to protect your business, you should think

About these questions…

How much money will your heirs need to take over or sell it?

How much would you need to replace a key person upon their death?

How much would any co-owners need to buy out your share?

 

* Enough to Clear Your Debts

Life insurance shoppers who are concerned about leaving debts behind

Can calculate their death benefit based on the amount it would take to

Clear their debts after death. Those who wish to leave money to pay for

Their burial and other final expenses can fill out a Funeral pricing checklist

To estimate their needs.

 

In some cases, though, the amount of coverage you require will be greater

Than what you can afford. You may wish to address this by buying a

Combination of term and permanent insurance, or you may buy only term

insurance. And another option is buying a term policy that you can convert

To a permanent policy later. 

 

- Emily Guy Birken

 

https://www.thebalance.com/who-needs-life-insurance-2645793#toc-why-buy-life-insurance

 

 

Hayden Childs

Alabama Licensed Agent

(205) 269-1382

www.haydenchilds.net

 

“The grief is bad enough,

Don’t leave the burden

To your family!”

 

https://www.rememberingalife.com/

 


 

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