This is a very common question that comes up while reviewing our clients’ insurance needs. The answer though, is not as easy as just picking some random number. There is a way to figure out how much you actually need.
You may have heard responses like one or two times your salary, or as much as 10 times your salary, as a rule of thumb. Unfortunately, these answers do not consider your specific needs or wants. To figure out what your true need is, going through a Needs Analysis is vital.
While doing a proper Needs Analysis, one should factor in things such as income continuation, mortgage balance, college funding, final expenses, and other debts.
If you haven’t reviewed your current policy in a few years or didn’t go through a proper needs analysis when you purchased your policy, please reach out to us to help guide you through this process.
More importantly, if you have been waiting for that “right time” to get a policy, now is the time! Life insurance policies are more expensive with each year older you get, so the earlier you get a policy, the less you’ll spend.
Reach out to a FirstMark agent and get your life insurance conversation started today!