Calculating Your Insurance Needs
Buying life insurance is a step in the right direction. Making sure you buy the right amount of life insurance is just as important, though.
All too many people don’t buy adequate coverage, leaving their families to struggle when the unexpected occurs. While the insured parties may think that their policies provide enough to ensure financial stability for their families, they forget to consider outstanding debts and other needs when purchasing instant issue life insurance or other life insurance coverage.
When determining how much life insurance you need to buy, keep these factors in mind:
- How much do you spend each month? What are your family’s normal expenses and how much in monthly income do you need to leave behind to ensure their needs are met?
- How much are you saving? How much do you put away each month and how much is needed to ensure your spouse can continue to save for retirement or your children’s educational needs?
- How much debt do you have? Add up your car debt, college debt, mortgage and other debt, and your monthly contributions to these debts, and factor them in to your decision. All too many people don’t leave behind enough insurance to cover debts and provide adequate income for their families.
Working with a financial advisor can help you ensure that you factor all considerations in when making a decision regarding your insurance coverage. Helpful online insurance quote sites can also help you find affordable coverage.
EQUOTE helps consumers find the best possible quotes on life insurance policies. EQUOTE works only with top-rated insurers, helping to provide consumers with the financial stability that they and their families deserve.