I want to buy a life insurance policy but I'm not sure how much life insurance I need.
How do decide how much life insurance is right for me? What should I consider making coming up with the amount of life insurance to buy?
It all depends on several factors including your age, your goals, your debt, your assets, if you're married or not, your financial responsibilities, and your future plans for a family and life changes.
Many people choose to buy life insurance to help provide financial security for someone else in case they die.
For instance, you may want to buy enough life insurance to help your spouse maintain a lifestyle she shared with you while you were alive. Included in this amount of life insurance may be enough to replace your income if invested wisely, money to pay off the debts including the home and car loans, funds for your child's college education, living expenses, etc.
Make sure you review your life insurance needs every 2-3 years, and upon the event of a major life change; such as, getting married, starting a family, buying a new home, etc., as your needs will change.
One way to determine your life insurance needs is to use a
life insurance needs calculator. You just answer some questions about your financial situation and the calculator gives you an instant, accurate estimate of how much life insurance you may need to meet your goals.
