November 6th, 2011 | Author: Mitch Reynolds

How Much Life Insurance Is Enough

Life Insurance Needs Analysis to determine how much life insurance to buy

When planning your life insurance one of the first questions you should be asking is How much life insurance should I buy? Some people pull numbers out of the air, like $250,000, $500,000 or maybe $10 million of life insurance. How much insurance is the right amount to protect you and your family?

Life Insurance Needs Analysis

Life Guard Insurance provides you a tool to complete a life insurance needs analysis on our website. It is better, however, to do a proper life insurance needs analysis face-to-face with a license life insurance broker.

3 Things to consider in your life insurance needs analysis

Immediate cash needs: liquid cash required in the next 6 to 12 months if someone was to pass away, like paying off mortgage and debts, funding children’s education plans and funeral and final expenses.
How much cash do you have? What do you have in liquid cash or cashable assets, existing life insurance and group insurance through work to take care of these needs?
Income replacement: The income of a breadwinner to the family and the potential loss of those years of income to the family is by far the greatest asset you have. It is worth a lot more than your house.

Determine how much income the family needs and for how many years will probably be the biggest factor in determining the amount of life insurance you need.

Life Insurance Needs Analysis Formula

Immediate Needs + Income Replacement Existing Assets = How much life insurance you need

If you have enough life insurance already, the life insurance needs analysis should be 0 or a negative number. If not, you are at risk and should take care of your life insurance planning today. Passing away without enough life insurance can be devastating to your family, loved ones and business partners.

Life Guard Insurance helps you know how much life insurance you need

Contact Life Guard Insurance to find a local life insurance broker who can take you through a life insurance needs analysis to determine how much life insurance you need.

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