How Much Insurance Do I Need?

This question requires careful consideration. First, ask yourself: “If I died tomorrow, how much money would my family need?”

Insurance reduces risk and provides security for yourself and your family’s future. To know how much insurance you need, you’ll need to consider your lifestyle and what the possible risks that could affect it. When calculating how much life insurance you need, consider the following:

Estate Expenses Funeral Expenses Mortgage Loans and Debts Replacing Annual Income (number of years?) Children’s education Resources available at death: savings, stocks, mutual funds, retirement accounts, life insurance, and other assets.

When you think of insurance, the first thing that comes to mind is your auto and home owners insurance. Replacement of these assets in the event of damage can be very costly and most of us hold auto and home owners insurance policies.

But what about insurance on your life?  Why is it that so many people put a value on their automobile and home but when it comes to insuring their lives for their loved ones they turn their head?  This is why having the proper life insurance policy is a neccessity.  It’s the protection that your loved ones deserve and it is essential to many families, giving extra security if the unthinkable should happen. The loss of a breadwinner is devastating enough, without having the added stress of worrying about how to cover the bills and mortgage.

Other types of insurance are as equally important. Life events such as illness, accidental injury, loss of employment income, or a death in the family can affect family security. Yet these potential risks to your lifestyle can be reduced by the right insurance planning.

Changes in lifestyle also determine the types and amount of insurance you need. The amount of life insurance that you have will likely change throughout your life, depending on your life circumstances. Some of these changes might be getting married, starting a family, changing jobs or preparing for unexpected events.

Should you have Term, Universal Life, and Permanent Life Insurance? To meet modern trends, life insurance providers also offer to act as an investment vehicle, building up a sum of extra equity over the lifetime of the policy. This can be withdrawn or borrowed against, and usually offers a tax-free sum on retirement or death.

Deciding on an amount of life insurance you should have requires careful consideration. We can help you determine just how much insurance you need based on your age, your income, family circumstances and obligations, assets owned, and debts owed.

Do you have questions or concerns about insurance ?  Feel free to call for a free initial consultation.  1-800-442-8240 #21.

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