So, the real question is how much life insurance do you need?
Simply put, you need enough to protect your families’ loss of income if you die. When calculating the amount of life insurance that you need, you should consider the immediate needs of your family upon your death, as well as their long term income needs.
Some immediate financial needs might include:
- funeral expenses
- final medical expenses
- re-payment of short-term loans (credit cards, auto loans, etc..)
- paying off the mortgage would definitely help your family financially long term.
Additional long-term financial needs include replacing lost income to support your family until your children are grown, or need to pay for their college tuition.
If you are a single parent, you may be the sole provider for your children, so you have to protect their future. Money cannot replace a mother or a father. Even if you have someone to care for your children, if you are not there, they will likely need the financial security that a life insurance payout will provide. So, how much life insurance coverage do you need to provide your family a secure future? Our Life Insurance Calculator will help you figure that out.