Do You Know What You Want Your Life Insurance to Accomplish?



If you’re researching life insurance policies, you know by now that it can get complicated. Although it is a straight forward type of insurance, it is not a simple subject.  Answering the question “how much life insurance do I need” might not be the most useful way to approach the problem. The better way to figure out how much life insurance you need, it to ask yourself, “What do I want my life insurance to accomplish?” Then you can start to determine how much life insurance you’ll need.


Why do you need life insurance?


So why are you considering buying life insurance?  Do you have a family you want to take care off after your death?  Do you own a home you want paid off?  Do you think your kids are headed for college?  How long will your family last financially without your income and no insurance?  Think about what you want your insurance policy to accomplish for you, and you will have an easier time figuring out how much coverage you actually need.
The most common reason for purchasing life insurance is to replace the income of a family member.  If the only need you have is to replace your income, it is recommended that you multiply your annual salary by between 5 and 10 to calculate a starting point for life insurance coverage.


If you have a mortgage or a large amount of debt or obligations, you should consider adding those to the amount of insurance you think you may need.  If your spouse works, consider their ability to pay the bills based on their own income.  If they can afford all the bills based on their income, there is no need to figure in paying off the house.


Even a small amount of life insurance is better than none


Life insurance isn’t cheap, but it isn’t the most expensive bill you have either.  For some people, life insurance may seem too expensive, especially if they’re just starting a family.  Many people are surprised at how little life insurance coverage costs per day.  Many times it costs as much as their daily coffee habit.  Term life insurance is the most affordable type of insurance available, and can be structured to meet nearly every budget.  Buy some amount of coverage, and as your financial situation improves you can always purchase more.


Review your life insurance coverage annually


Just like with your other types of insurance, life insurance should be reviewed annually to make sure you have adequate coverage.  Things change, people get married, they buy homes, they have children, and your life insurance needs will change right along as well.  An annual review takes only minutes, and is well worth the time and effort to ensure your family is adequately covered.


Contact us to see if you can save money on your insurance by speaking to a professional independent insurance agent at Journey Insurance.


Let us sift through the hundreds of insurance programs to find you the most competitive rates available.  Let us do the paperwork while you spend your time doing something you actually enjoy!


Journey Insurance Agency * Irvine, California * 888.323.7480


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