How Much Life Insurance Do You Need?

It’s easy to be confused when it comes to life insurance. There are different types of policies, and those policies come in different amounts, making the whole process of selecting the best life insurance policy trickier. At THINK Insurance & Financial Services, we want to help you understand how to choose the amount of life insurance you need for your family.

Assess Your Financial Situation

The first step in purchasing life insurance is to determine what your current financial situation is for your family. You should take a look at your long-term goals, and your savings account to determine what assets you have that can be used towards your expenses, such as paying off your mortgage and funding your children’s college fund.

Determine Your Financial Gap

After you have an idea of where you are, you need to determine where you want your family to be financially if you were no longer in the picture. Do you want them to have a nest egg of $100,000? Would you like for your mortgage to be paid in addition to the nest egg of $100,000? You can determine you can determine your financial gap by subtracting where you are currently (a monetary figure) from where you want your family to be if you are no longer able to provide for them (a monetary figure).

Talk to Our Local Insurance Agents

Once you’ve determined the gap in your finances, it’s time to speak with a licensed insurance agent. One of our agents will take a thorough look at your calculations, discuss a few options with you, and present an insurance strategy for you. The strategy will take into consideration things like how much you make each year and your life expectancy.

When you are ready to review the options you have available for life insurance, start at our website. On our site, you will find information that can help you begin the process of purchasing the life insurance product that is right for you