Life Insurance -- Deciding How Much Coverage You Need And Paying Less For ItEveryone does NOT need the same amount of life insurance coverage. This is because no two families have exactly the same needs, lifestyle, hopes, aspirations and expectations. These help shape what each defines as the good life, hardship or abject poverty. So how do you decide what amount of coverage you need?
You might prefer watching a video that gives you the information you need, click here: Life Insurance 101
It depends on who you are and to what extent you want to shield your loved ones if they are dependant on you. It is important that you also take note of the new issues that might be introduced if you pass on...
1. Immediate expenses: Most often you're advised to look at immediate expense that your demise could cause. These include funeral and burial costs, lawyers’ fees and the like. Also included in immediate expenses are issues like outstanding mortgages.
You certainly don't want your beloved family to become homeless. Therefore, you must factor in your outstanding mortgage if you want to buy adequate life insurance coverage. Don't fail to also factor in all outstanding debt that your family will inherit.
2. Ongoing expenses: If you pass on life must go on. How much does it take to run your home at your current living standards. Factor in inflation and project to such a time when your dependants would be able to fend for themselves.
Do NOT fail to include the cost of certain adjustments that might become necessary. If you have young kids and your spouse needs to take a helper for the kids because of a second job, it will cost some money. You could as well ensure your spouse is well provided for to the extent that such drastic adjustments won't be necessary.
3. Future expenses: Do you want your kids to go to college? Do you have any particular college in mind? Factor in what it will cost to put them through college. When do you plan to retire with your spouse? Good planning will ensure this.
This is just a little overview of what you need to do to ensure you have adequate coverage.
Now, the right coverage amount for you might be a lot more than you envisaged. What do you do? You will still get superior coverage for a lot less if you get and compare quotes from a wide range of insurers. This simple exercise could save you as much as several hundreds or even up to a thousand in premium dollars.
Below is a video that I really recommend that you watch because it gives a very good overview of the subject matter...
Start getting and comparing quotes. The box below is a good place to start. It's free and will take you just a few minutes...