How Much Life Insurance Do You Need?

Filed in archive Information About on May 28, 2010

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Your need for life insurance changes throughout your life, but your greatest need for it is when you have a mortgage and your children are still rather young. The goal of having life insurance is to provide for the needs of those who depend on your income, and to enable them to continue living at a comparable lifestyle if you should die.

When you calculate life insurance needs, you will also want to include enough coverage in the life insurance policy to be able to pay of any debts that you still have. This should include the mortgage, car payments, and any other debts that you presently have, as well as some you may reasonably expect in the near future.

Paying for college for your children is another possibility. College costs are outrageous these days and are apt to only get worse. Life insurance can help them get through a higher education and help prepare them for a good future.

Funeral costs and possible medical bills are another serious consideration. Currently, a funeral costs an average of $6,500, and life insurance can help that final cost to be met.

Other things that need to be considered are:

* How many years do you want to provide for your spouse and children?
* Do you want to include some inheritance money?
* How much is needed for property taxes and for how many years do you want to pay it?

To help you know what you will need, you can easily find a life insurance calculator online.

Darrel Richter, in an article at LifeInsurance.Net, says that you should discuss future plans to help you decide how much may be needed. Your spouse may want to remarry, or may want to work. If so, this could greatly reduce the need for higher life insurance amounts.