"Price is what you pay. Value is what you get." —Warren Buffett
Life insurance is a perfect illustration of the difference between price and value. With policies that cost less than your monthly cell phone or cable bill, it's hard to compare what you pay with what you get. Your family is protected, your finances are secure, and you get peace of mind. Now that's value.
When it comes to deciding how much life insurance coverage you need, the answer isn't going to be the same for everyone. It depends on your family, your job, and your finances. Luckily, we have two quick and easy ways you can estimate the dollar value of coverage you need:
Once you've figured out how much you need, you can get a fast, free quote that tells you just how affordable that policy can be. For more than 4 decades, Trusted Quote has helped half a million American families protect themselves with life insurance. If you're ready to join them, click the orange button for your quote or read on to estimate how much coverage you might need.
Do you need $100,000, $500,000, $1,000,000, or more?
If you're looking for a ballpark figure, there's a quick way to get one. Simply take your annual income, and multiply by 8 or 10. This isn't a failsafe, and it's possible that this number will be either too much or too little, depending on your health and financial obligations. But it's a way to get the ball rolling if you're curious.
Sample annual salary: 50,000
Multiplier: x 10
This doesn't take any specifics into account, such as your debt load or the need for a spouse's future healthcare. For a more detailed (and more accurate) estimate, we suggest using Method 2, below.
Estimating your family's financial needs is the first step in planning for the future.
If you want a more accurate quote, you need a thorough estimate of your life insurance needs. To get there, you need to know a bit about what life insurance is meant to cover. Then, you'll need to estimate those costs based on your financial future. Here are the main categories of expenses you want your insurance to cover:
Some of these issues might take you awhile to sort through. You may never have thought about whether your two-year-old is college-bound, and if so, how much tuition might cost in sixteen years!
It takes guts to plan for a life you might not even be there to see. But the people who plan...and act on that plan...are rewarded with peace of mind and their family's financial security. Is your family's future worth an afternoon with the calculator?
To help you get started, here's an example of how to estimate the costs described above:
Based on these financial obligations, the family in this example might want to get a quote for a $500,000 life insurance policy.
As a matter of fact, there is. Check out our video to find out whether you fall into that category:
We hope you can now answer the question, "How much life insurance should I have?"
To get a free, no-obligation quote, just click the orange button below. If you want to talk to a real, live person during the process, you can always call us at 800-823-4852. We're happy to help!
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