The amount of term life insurance you need will depend on your specific situation and the reasons for buying the life insurance policy. One way to. show more The amount of term life insurance you need will depend on your specific situation and the reasons for buying the life insurance policy.
One way to decide how much term life insurance you should buy is to consider the needs of your family if you were to pass away prematurely.
Term Life insurance may provide financial security to meet many of your family’s needs by providing a fund they can use to:
Pay off an individual’s debts, such as medical bills, funeral expenses and health care costs
Pay for estate taxes and other expenses related to settling their estate
Provide a lifetime income for your spouse
Pay off an existing mortgage on your home
Pay for your children’s college education
Provide retirement funds for your spouse
Provide an adequate income for your
spouse to give your family time to adjust to a new standard of living without you or your income
Receive interest to provide money for some special need – such as travel, education or health care costs.
Provide a monthly income until your children are grown up and living on their own.
The future financial needs of your family should be a major consideration in deciding the right amount of term life insurance to provide the financial security they deserve.
Another contributing factor is the amount of your annual salary. In addition, your family’s style of living they are accustomed to, your monthly expenses and future financial goals, such as, college tuition, retirement funding, vacations and living expenses.
To quickly and easily find out how much life insurance is right for you try this life insurance calculator at http://www.term-life-online.com/term-lif.
I hope that helps! Best of luck to you.
Source(s): 18 years experience in the Insurance Industry.
Hadley · 8 years ago