If you're in your 20s or 30s, most of your focus is probably on planning a family or building your career. However, unexpected accidents and illness can result in serious financial ramifications for those you love. Life insurance is designed to keep your loved ones protected, regardless of your age. Find out how to tell if it's the right time for you to take out a policy as well as how to estimate the level of coverage you need, below.

How Do You Know If You Need a Life Insurance Policy?

There are two key factors that indicate a need for life insurance: debt and dependents. Most people have some sort of debt, like a mortgage or education loans, and if you die unexpectedly, it could leave a financial burden on your loved ones. For instance, if you still have private student loans from college, the debt would transfer to your co-signer upon your death. However, if you have a life insurance policy, it can be utilized to pay off the remainder of the loan so the burden doesn't fall on someone else.

If you currently have, or are planning to have, children, you should also invest in life insurance. Dependents are any individuals that rely on your financial contributions to survive, including spouses, children, and even retired or senior parents. If you pass away, your income goes with you, but if you have an insurance policy, it can be utilized to keep them afloat financially after you're gone. Even if you're only engaged or are simply considering having a child, taking out a policy now can ensure that your future dependents are protected.

How Much Life Insurance Should You Get?

Once you've identified a need for life insurance, you need to determine how much coverage you need. The minimum recommended amount is equal to cover funeral costs in your area, usually between $5,000 and $10,000.

You should also allot enough to eliminate any debt you'd leave behind at this moment, such as a mortgage and auto loans. If you have any dependents, you may want to consider increasing your coverage amount to allow for up to at least a year of living expenses, including utilities, groceries, and day care or school costs.

It's never too early to invest in life insurance, but not all plans are created equal. Find the right policy for your needs by turning to Custis Insurance Service in Sheffield Lake, OH. For more than 60 years, the independent agency has assisted both residents and businesses in finding coverage that meets their specific needs. Request your insurance quote today by calling (440) 949-7172 or by utilizing their online contact form.