Life insurance is the one type of insurance you don’t buy to protect yourself. You buy it to protect the ones you love. No two people have the same life insurance needs. It makes good sense to start acquiring life insurance when you are young, and it is at its least expensive. If you are purchasing term insurance, keep in mind the term may end while you still need the insurance, and it will not be the same price to renew it. At Powell’s Insurance in Clinton, NC, we can offer bilingual service and the top carriers in the business.
How much life insurance is enough depends on who depends on your income to maintain their lifestyle. If you are single and have no dependents, you only need enough life insurance to pay off any debt you might have and for your final expenses. If you own a home, the amount of life insurance you have should cover the outstanding amount on your mortgage. You don’t want to leave your loved ones struggling to deal with it.
When you have dependents, whether it is aging parents, children, your spouse, or anyone else who counts on you, it is more complicated trying to figure out how much life insurance is enough. You have to consider what your annual income is. The lower your income, the less you will be replacing. How many years will your dependents require assistance? It can be many years with young children, and if you want to make sure college is in their future, figure that in as well.
Somewhere between 7 and 10 years’ worth of income is what experts suggest, but depending on your lifestyle and income, you may feel that more or less is what you need.
Contact Powell’s Insurance in Clinton, NC to discuss your life insurance needs.