When you're putting together a long-term financial plan, one of the most important aspects is a good life insurance policy. However, it can be difficult to know how much coverage you need. Robert Taylor Insurance, the leading seller of life and homeowners insurance in Lorain, OH, provides some important advice to help you know how much life insurance to buy. With a bit of forward planning, you can rest easy knowing that your dependents will be cared for if you're not around to provide.

How Much Life Insurance Do You Need?

Do You Have Dependents?

The amount of coverage you need depends largely on what you want to achieve with the coverage. If you have dependents who will need financial support to maintain their lifestyle, you should first figure out how much your family spends each year. Multiply that amount by the number of years you want the death benefit to support them (for instance, until your youngest child turns 18) and round upward to account for inflation. A policy of this size should cover living expenses.

Do You Have Other Financial Goals?

However, living expenses may not be enough if you have other financial goals. For example, do you want to pay for some or all of your children's future college expenses? Do you wish to provide enough to pay off debt or purchase a larger home? Do you have children who will need care through adulthood? Consider these factors when calculating the necessary benefit amount.

Do You Simply Need Funeral Expenses?

If you have no dependents and no outstanding debt, you may simply need a death benefit large enough to cover your funeral expenses. A typical funeral in the U.S. today costs between $7,000 and $10,000, so a life insurance policy of that size should prevent your loved ones from being saddled with unexpected expenses while going through the mourning process.

Robert Taylor Insurance, the most trusted and experienced life and auto insurance agency in Lorain, OH, will help you decide precisely how much life insurance you need and the policy that works best for you. Visit their website to request a quote, or call (440) 277-5191 to speak with a friendly, helpful agent.