|
|
How
Much Life Insurance Do I Need?
Evaluating your family's needs is the first step in purchasing a policy.
Gather all your personal financial information and estimate how much money
your family will need after you're gone. Include ongoing expenses such as
day care, tuition or retirement and immediate expenses at the time of death
like medical bills, burial costs, and estate taxes.
Your family also may need funds to help them readjust ... perhaps to finance
a move or pay expenses while job hunting.
It boils down to this: life insurance provides financial protection. If
protection is not your primary goal, you should consider other financial
products.
While there's no substitute for careful evaluation of how much life insurance
your own individual family will need, one rule of thumb is to buy an amount
equal to five to seven times your annual gross income.
Review your policy periodically or when your situation changes to be sure
your coverage is adequate.
|
 |
|
