It’s easy to put off buying life insurance. After all, it can be difficult to think about your own mortality. If you have the foresight to purchase adequate coverage, though, you can provide a wide safety net for loved ones. However, since everyone’s situation is unique, there’s no standard formula for determining just how much coverage you should buy. Thankfully, the following considerations can help you arrive at a reasonable estimate. 

3 Questions to Ask When Determining Life Insurance Needs

1. How Much Debt Am I Carrying?

You will relieve a considerable burden for those you leave behind if you purchase enough life insurance to pay all your debts in full. This includes student loans, credit card debt, mortgages, medical bills, and car payments.

2. How Much Am I Contributing to the Household?

If you have a traditional job, determining your total contributions is easy. Just consider your annual salary. Experts recommend purchasing enough insurance to cover total earnings for about ten years. That means if you make $40,000 per year, you should include about $400,000 in the coverage calculations for income. 

If you contribute in other ways with childcare and housekeeping, you’ll have to estimate the costs of these services to give them a financial value. Then, multiply their annual expenses by ten to arrive at a reasonable figure for household contributions. 

3. Are There Any Additional Expenses I Want to Cover?

If you plan on paying for your children’s colleges or weddings in full, it’s wise to include these funds in your life insurance calculations. Depending on how many children you have, this could mean purchasing a policy that’s valued at well over a million dollars. However, the peace of mind it will ultimately provide will be priceless. 

For affordable life insurance that will meet your family’s needs, turn to Imperial Agency in Garfield, NJ. Since 1979, this insurance agency has been helping both individuals and businesses secure the coverage they need to ensure protection in all eventualities. Their knowledgeable team will compare hundreds of policies to help you find the best one given the circumstances. To request an insurance quote, reach out on their website or call (973) 546-9567 to speak to a representative.