How much life insurance is needed? This is a question that every person purchasing life insurance asks. It’s an important decision because if you do not purchase enough, your loved ones may not be taken care of. If you purchase too much, you may be spending money on insurance that you could use to pay bills and support your family or save.
In the United States, the average cost of the service, funeral home, burial and headstone is between $7,000 and $10,000.
This is a much more complicated question and takes into account many factors. Some firms recommend between 8X-10X your annual income. However, this is an oversimplification and normally for a young couple with kids, this drastically under estimates the amount you need. For an older couple without kids or other large liability, it may over estimate the amount needed.
As you can see, there are many more factors that a simple 8X-10X multiple does not take into account. Please avoid agents that overly simplify your needs, as you may not be covered correctly.
Call us and we can do an analysis to calculate your insurance needs.
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