Figuring out how much life insurance you need sounds intimidating, but it’s not that hard. A lot of it boils down to common sense and a few self-answered questions. You should ask yourself, do you need insurance, what kind of insurance you need, and roughly, how much you need?
Do you need life insurance?
Do you have dependents? Is it just your spouse? Does he/she have an income? Do you have kids? How old are they? Are you looking after your parents? Each family’s circumstance is different, so it’s best to account for everything you can think of before speaking to an insurance advisor. Regardless of specifics, if you are your family’s sole earner and you don’t have much in savings, life insurance is a wise investment. At Juniper we are experts in getting you affordable term insurance quickly and easily.
Roughly, how much insurance do you need?
We’ll say it again, this isn’t hard to figure out. Just answer these simple questions, and you’ll have a good idea of how much life insurance coverage you need.
- What are your debts like? How much is your mortgage? Are you paying off a car loan? A personal loan? If you have debts, you’ll want more life insurance to protect your family.
- What are your spending habits like? How much do you spend monthly? Try to come up with a list of your everyday expenses. This includes groceries, utility bills, and entertainment. Here’s a quick tip: use your bank statements to estimate your spending.
- What are your long-term goals? How much money do you need to retire? Are you saving for a getaway home or an RV? How about education for the kids?
- How much income do your dependents need to maintain their quality of life? This is the big question that takes into account all the previous questions. A very quick and dirty method to determine this is to simply add up your current expenses and any likely future expenses. It’s a little more complicated than this of course (inflation and unexpected expenses are big factors), but it’s a good starting point.
When you have a good idea of what you want, Juniper provides the easiest and fastest way to protect your family in the event of your death.