Life insurance can be confusing. Term life, universal life, or whole life? $50,000 in coverage or $100,000? How do you know how much insurance you should have? While there is no exact answer to this question, there are a few tips that you can use as an estimate. In the Gainesville, GA area, you can find out how much life insurance you need with the Chastain Agency Inc.
Total Asset Value
When considering life insurance, many people like to consider their total asset value. This can be calculated by adding the total of all of your larger and valuable assets that would be hard to replace out-of-pocket. This list may include your home or houses, other properties like commercial properties, boats, RVs, and other smaller items such as gun or knife collections, art, and other personal value assets.
Value of Your Income
Perhaps the hardest thing to replace in the event of your death is your income. If you have a spouse, how will your spouse make up for the income he or she would lose with your passing? Therefore, any calculations of life insurance should include how much your regular monthly income was for at least one year past your death.
Standard of living is unpredictable. You had a certain budget and expected expenses that you counted on, but if you were no longer around, the ones left behind would need to allow for standard of living increases. Additional expenses may also present themselves over time including young people entering college, new vehicles, and other items that are needed to continue their quality of life.
Final Expenses and Debts
One of the basic expenses is the expenses for your final expenses. Funeral costs and final debts should be paid so that creditors and others won’t bother your family to pay your bills you will no longer be able to pay.
Many Ways to Estimate
Chastain Agency Inc. reminds you that life insurance is the final gift of love you leave to your family. They serve the Gainesville, GA area. They can lead you through the various ways to estimate how much life insurance you might need to ensure your family’s well-being. If you need questions answered about your insurance needs, contact them for more information.