How Much Life Insurance Do I Need?

If you’re thinking about getting life insurance, that's good for you! You’re making a smart decision to help protect your loved ones’ financial future.

So, let’s get started. How much life insurance should you get? You’ll want to make sure your coverage will help your family handle day-to-day needs and ongoing expenses in the event of a passing. Things like income replacement and paying your mortgage are important things to consider. 

To get a fairly accurate coverage estimate, you’ll have to do a bit of homework, but it’s worth it. You can start by adding your current and projected expenses, including daily needs like food and utilities (to estimate your loved ones' needs), as well as your debts, housing, childcare, education (don't forget future tuition!) and funeral expenses.

Next, add your assets, including bank accounts, investments, retirement accounts, CDs and existing life insurance.

After that, subtract the sum of your assets from your total expenses, and the resulting amount will give you an idea of how much life insurance you’ll need.

Once you’ve determined your life insurance needs and are ready to take the next step, your insurance agent can help you decide what options are smartest for protecting your family’s financial future.

Life Insurance offered by American Family Life Insurance Company.