Even though you usually wait until you’re older, life insurance is a security tool that everyone should be thinking about. The earlier you have it, the safer you and your family will feel. Independent agents, like the agents at Tackett Insurance Inc which serves the Memphis, TN area, can help you by offering you life insurance options.
How Much Life Insurance Do I Need?
You’ll need enough insurance to cover any debts after you’re gone. Things like mortgage payments, car notes, or personal loans need to be paid. You’ll first start by adding up everything that you own. Determine how much your spouse will be able to contribute to the household by themselves. Then, you’ll need to speak with a representative to make sure you can get enough insurance to cover those expenses. You can get enough life insurance that will either pay everything off or at least pay for your debts for a couple of months or years.
Calculating How Much You Need
When you need to calculate how much you’ll need, one option is to multiply your average yearly income by 10. To take care of your child’s college tuition, add $100,000 per child. Using this method, if you made $50,000 per year and you had 2 children, you would calculate your approximate life insurance need as follows:
Income is $50,000 X 10 = $500,000 + (2 children) $200,000 = $700,000.
Another way to decide how much you need is to calculate your income by the number of years you want to provide for your family.
Income is $50,000 X 3 years = $150,000 + college expenses for each child.
In both situations, don’t forget to add funeral costs and debts you have.
Speak with agents at Tackett Insurance Inc for help with your policy information when in the Memphis, TN area.