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
“The grief is bad enough,
Don’t leave the burden
To your family!”
https://www.rememberingalife.com/
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