FAQ - How Much Life Insurance Do I Need?

How much life insurance do I really need?

To answer this question you need to review your assets and liabilities, so you can better understand the financial implications of your death. Start by doing a "worst case" scenario. Assume you were to die today and no one will be able to continue with the financial obligations you will leave behind. This might include payments on a mortgage, auto or credit cards. If you have left a spouse or children this makes the need for insurance even greater. Statistics show it takes ten thousand dollars a year to raise a child to the age of eighteen. Add in the cost of a college education, which could run up to one hundred thousand dollars, and the figure stands at two hundred and eighty thousand dollars to raise a child. It’s very clear you’ll need more protection if you have a young family. You also need to provide ready cash for final expenses. This includes funeral costs, medical expenses, probate fees and estate taxes. The main purpose of life insurance is to provide financial security for your family. An insurance expert will be able to help you find an insurance plan that suits your situation.