If you are looking at your insurance needs for the first time or are reviewing the plans you already have in place, there is one important question you must ask: How do I know I have the right amount of life insurance?
To determine what amount of life insurance is right for you and your needs, there are several factors to consider:
- What financial goals do you want to achieve for your surviving family?
- Do you want to eliminate debt from credit cards, loans or mortgages?
- How much capital is needed to provide ongoing income for your family?
A number of online calculators are available that can give you a good starting point. From there, your financial planner can walk you through a good “needs analysis” to provide you with an appropriate amount of coverage for your situation.
Whether your goal is income replacement, estate planning or business succession planning, defining your financial goals as a starting point can easily determine the amount of insurance that is right for you.