Consider these factors when choosing life insurance.
Figuring out how much life insurance you need can seem like a daunting task, and it can be difficult to know where to start. A good way to look at your life insurance is by determining how much your loved ones will need to get by in your absence. Here are the major factors you should consider when choosing the right amount of life insurance for your needs.
It’s important that your life insurance benefit is big enough to cover all of the debts you might leave behind. Add up all your debts, including your student loans, credit card debts, and home mortgage to get a better idea of how much your policy will need to cover.
If you have children, it’s important to make provisions for their future education expenses. To make sure that you have enough coverage for college expenses, a good rule of thumb is to make sure your policy has $100,000 per child to cover their education costs.
Another thing you should consider when you’re buying life insurance is how the loss of your income will affect your loved ones. Your life insurance policy should include enough coverage to make up for your income. Multiply your annual income by the number of years you would like to replace income for and this number will give you a better idea of how big your policy will need to be.
These are some of the major factors you should consider as you are deciding how much life insurance you should get. Do you still have questions regarding your life insurance? Don’t hesitate to contact the experts at Vail Agency in Rochester, New York. Our dedicated team is ready to get you the coverage you need today.