The amount of life insurance you need is entirely up to you. It will depend on various things, including how long you have until retirement, your debts, whether you’re the sole earner or make significantly more than a spouse, and if you have children. For example:
If you want a policy to help pay for a child’s college education, then a 20-year term policy might be best for you. You can let the policy terminate at the end of the term, but you can rest assured that if you do die before your child graduates college, this policy will pay for their tuition and other expenses.
Many people tie the value of their life insurance policies to the value of their debts—mortgages, car payments, etc. If you die while these debts are outstanding, your beneficiary can use the money to settle expenses.
Some people tie the benefit to their income and leave a certain number of years’ worth to their survivors’ paycheck. So, if you were to take your current paycheck and multiply it by ten, then your death benefit will provide ten years’ worth of income to your family.
Our team of experts at Select Insurance, LLC can help you determine what policy limits might be best for you.