Right Amount

Through the years we have heard that you should have insurance equaling 10 times your annual income. Or was it 20 times? 


The fact of the matter is that there is no specific way to tell you what the right amount is unless you go through a needs-analysis. 


With a needs-analysis you will have a much better idea of how much coverage you should have that will “help you sleep well at night” knowing your family is protected. 

Here are some things to consider. 

  • How much money will be needed to meet immediate obligations?

  • How much income is needed to support your family going forward?

  • What is the present value of your existing resources?

You can buy term life insurance for 10, 15, 20, 25 or 30 years. 
Some ideas to consider include: 

  • How many years until my youngest child is no longer a dependent?  

  • How many years until my spouse and I retire? 

  • How many years until my mortgage is paid off? 

  • How many years until my other long-term goals are met? 

  • Write down your answers. 

As an example, your answers might be: 15 years, 23 years, 18 years, 10 years. 

  • Use the largest number of years to select the policy for that time frame. 

  • In the above example, a 25-year policy will cover you for all of those years and needs. 

Another option is to layer multiple policies together to cover your needs.

Sometimes this approach could save you 25% or more on the cost of a single policy. However, you will need to speak with one of our agents to review this option. 

Ready to Get Started?