How Much Life Insurance Do I Need?

Acquiring a Lakewood, CO life insurance policy is fundamental as it comes in handy when you have dependents, a business, or loans. However, determining how much insurance you need can be somewhat challenging, considering that life changes daily. 

Fortunately, there are many considerations you can make to determine the amount of life insurance you need. Some of these include:

Debts

Since a life insurance policy can be used to cover your outstanding debts (such as car loans, student loans, and mortgages), you should consider an insurance policy that includes enough coverage. 

For example, if you have a mortgage of say, $250,000 and a car loan of $4,000, you will need at least $254,000 in your policy.

Insuring others

You have very many important people in your life. It could be a spouse, children, or aging parents. How much do they need before they can support themselves financially? Figuring this enables you to determine how much life insurance you need. 

Income

Tax returns play a significant role in determining the amount of insurance you need. In this case, those who earn more need more coverage. Your Colling Insurance Services Inc. agent can assist you in managing your life insurance calculations. 

Savings

Taking a closer look at your current savings will be a bit easier to figure out the amount of insurance needed. In connection to this, if you have significant savings or investments that can cover your outstanding debts, burial and offer financial protection to your dependents, you will require less life insurance. 

The Bottom Line

A life insurance policy gives you peace of mind knowing that you and your beloved family are protected regardless of what happens. Consider the above factors when estimating your insurance need, and if you have questions, don’t hesitate to contact Colling Insurance Services Inc. of Lakewood, CO.