How Much Life Insurance Do I Need?

Unfortunately, the answer to this, like many questions in life, is: it depends. Do you have children? Are you married? Are you divorced? Where do you stand financially? Do you have assets? Liabilities? Both? Taking into consideration that words like 'more' or 'less' means different things to different people, let's say that 'more' will mean 'purchasing enough life insurance to fully support everyone in your life despite your liabilities' and 'less' will be defined as 'purchasing enough life insurance to supplement the income of your dependents or heirs.'

Get a free online term life insurance quote today!

MORE

You will need to purchase more life insurance if the following are true for you:

• If you are married and your spouse depends on you financially.
• If you have children who are under the age of 18 and depend on you financially.
• If you are married with children, all of whom depend on you financially.
• If yours is the only income supporting your family.
• If your spouse currently works but would need to stay home with the children if you were gone.
• If you intend to pay for your children's college expenses.
• If you have learning or physically disabled children who are not now or may never be able to support themselves.
• If you have no money set aside for your funeral expenses, the cost of which, currently, is more than $5000.
• If your spouse will not be self sufficient until Social Security benefits kick in.
• If your parents, spouse's parents, or other members of the family will be dependent upon you financially.

Get a free online term life insurance quote today!

LESS

• If you are unmarried.
• If you have no children.
• If your spouse has a high paying job.
• If you do not own a home.
• If you have no legal obligations financially.
• If you have quite a large savings or trust fund set up for dependents.
• If you are not paying off any loans co-signed by relatives.
• If you are not interested in leaving financial contributions to charities or nonprofits.
• If you have life insurance policies currently.
• If you have veteran's insurance.
• If you have other assets that can be sold to pay debts and expenses.
• If there is enough money in Social Security and other pension plans for your dependents.

When you decide how much life insurance to buy, you may decide that a financial cushion or buffer for your dependents is your priority. If you feel that they have plenty of financial streams to protect them, then perhaps your life insurance will just contribute to the flow and can therefore be for a smaller amount.

Get a free online term life insurance quote today!