How Much Life Insurance Do I Need?

How Much Life Insurance Do I Need?

Determine how much life insurance coverage is right for you.  

If you’re in the market for life insurance, you’ll need to know how much coverage is right for your needs. The amount of life insurance you need may depend on how much your family will need to cover future expenses in the event of your death. To help calculate the costs, you’ll need to take your family’s future expenses, income, and major life events into account. Here are a few tips that will help.

Run the Numbers

Finding the right amount of coverage involves a series of calculations, which completely depends on your lifestyle and expenditures. Gather the figures for:

  • Your income
  • Current expenses
  • Assets
  • Important events (i.e. when your children will go off to college or the age at which your spouse can retire)

You’ll need these figures on hand for when discussing life insurance with your agent.

Work or Recreational Risk

Some work or recreational activities are considered high risk by insurers and may affect your application for life insurance – but you still need to tell your insurer. You’ll still be able to get coverage if you work in a dangerous working environment such as construction, or are into bungee jumping. However, you may need to pay more for coverage. If you fail to tell your insurer and you meet your fate while involved in one of these risky activities, your beneficiaries may be left empty-handed.

Update Your Details

It’s all too easy to buy life insurance and then forget about it. You should always keep an eye on your level of cover. If you take out a policy and then have children, move home, or get a higher-paying job, you may become underinsured if you don’t make a change.

For more information about selecting the right life insurance policy to suit your needs in Phoenix, Arizona, contact the team at American Premier Insurance. As life insurance experts, we’re able to walk you through the process of selecting the right policy to meet your needs.