One of the questions we get a lot is “How much life insurance do I need?” First, here are some considerations:
- 1 in 5 people wished their spouse or partner had life insurance or more of it.
- 29% say they would feel the financial impact from the death of a primary wage earner in one month after they passed.
- 38% of people have not purchased life insurance or more of it because they’re unsure of how much or what type to buy.
There are “rules of thumb” out there for determining how much life insurance you need, but the answer varies from person to person. You need to consider your own personal situation, including:
- Wages (for you and your spouse)
- Current savings
- Lifestyle (how does your family define being “comfortable?”)
- Personal Wishes (e.g. paying for your child’s college or private schooling or the ongoing care of your dependants)
Your needs may also change over time based upon your current financial status, so you will want to revisit your insurance strategy every so often.
Did you know we have a tool on our website that can help you figure out how much life insurance you need just by asking you a few questions? Use the tool now and then contact us to schedule your consultation.