Insurance
How Much Life Insurance Might You Need?
There is no single right amount of life insurance. The right figure depends on the people who rely on you and the costs they would face.
Start with what your family would need to cover
- Everyday living costs while they adjust
- Debts such as a mortgage or loans
- Future costs such as education
- Final expenses such as funeral costs
Subtract what is already in place
Savings, existing cover through work and other income may reduce how much extra cover you need.
Types of cover
- Term life: cover for a set number of years, often the lower cost option
- Whole or permanent life: cover that can last your lifetime and may build cash value
- Final expense: smaller cover often chosen to help with funeral costs
Talk it through
A licensed agent can explain how age, health and the type of policy affect price, and what each policy will and will not pay for.
Questions
Do I need a medical exam?
It depends on the policy and insurer. The agent can tell you what each option requires.
General information only, not financial, legal or insurance advice. Rules, prices and benefits vary by state and by policy. A licensed professional can explain what applies to you.