How Do I Calculate How Much Life Insurance I Need?

Life insurance protects you and your family from economic hardship as a result of death. It is an insurance company's obligation to pay the recipient of your choice a pre-determined amount of money when you die in exchange for timely payment of premiums while you are living.

Do you really need life insurance? Well do you want to provide for your family and loved ones in a manner to which they have become accustomed in the untimely event of your death? If you are the primary breadwinner who will pay the mortgage on the house your spouse and children live in if you pass? Who will provide financially for your family if you are gone? How will your children's education be financed in your absence? And finally how will your burial expenses be covered?

Now that you have decided you do indeed need life insurance, how much do you need and if you already have life insurance do you have enough? Some things you will need to consider when making this decision:

How much can your family afford to pay off your mortgage loan or your rent if you die?

How much debt will you leave behind to include credit card balances, car loans, student loans, personal loans etc.?

How much annual income will your death remove from your household?

How much will the funeral you desire cost?

Do you want to leave behind a charity fund in your name?

Do you have special family members you would like to leave a financial gift behind for?

How much will your spouse need to care for a family member with special needs?

How much do you want to leave behind for your children's education expenses?

Once you calculate how much money you want to leave behind consider how much you currently have in terms of individual or group life insurance along with your other assets such as savings accounts, CDs, mutual funds, stocks, bonds, 401K, retirement plans or pension plans and subtract that amount to decide how much life insurance you currently need to purchase.

Timothy Gorman is a successful Webmaster and publisher of Best-Free-Insurance-Quotes.com. He provides more insurance information and offers free money saving auto, home, health and life insurance quotes that you can research in your pajamas on his website.

---

Is Your Auto Insurance Company Rated?

Several national rating institutions rate insurance companies. Do coverages, rates,... Read More

Why Boats Are A Pleasure... But You Still Need Boat Insurance

One of the greatest pleasures that a man can have... Read More

The Immorality of Guarantee Issue Health Insurance

While there are genuine debates about whether privatized health insurance... Read More

Health Insurance 101 for Individuals and Families

The changing healthcare and health insurance landscape in the United... Read More

Understanding How Your Credit History May Affect Your Car Insurance Coverage

Many personal auto insurance companies consider your credit information when... Read More

Cheap Health Insurance Rates and Personal Health Insurance

If you've been out of school for a couple of... Read More

Discount Auto Insurance - Get Low Rates And Superior Coverage

Auto insurance rates can be quite expensive. If you are... Read More

Guide to Life Insurance

Here is a useful guide to life insurance. Simply put,... Read More

How Does Credit History Affect Car Insurance Rates?

Many personal car insurance companies consider your credit information when... Read More

Online Insurance Quotes California Auto

Finding insurance quotes for California auto is now pretty easy.... Read More

Medical Insurance Overseas

Thousands of people have work related commitments and in order... Read More

Insurance Claim - Medical Insights And Expenses

There's nothing that has a greater impact on evaluating a... Read More

Health Insurance And Insurance Brokers

If you are in the market to purchase your own... Read More

Insurance in Northern Ireland: Historic Difficulties

No doubt most readers will have heard of the Northern... Read More

Life Insurance: Who Needs It And How Much Do You Need?

Your friendly, neighborhood life insurance agent is most likely to... Read More

Types of Life Insurance

There are different types of life insurance policies available. Shop... Read More

Long Term Care Insurance How Much Should I Buy?

Long-term care insurance policies have a variety of features and... Read More

Finding California High Risk Truck Insurance

California high risk truck insuranceIf your are in need of... Read More

Eleven Money-Saving Auto Insurance Tips for Senior Drivers

Following a few simple tips and taking these measures will... Read More

Everything You Need to Know About Life Insurance

Life insurance is a type of protection that can be... Read More

Individual Health Insurance Plans - How To Find The Best Provider Online

Whether you are self-employed or a small business owner, finding... Read More

What Is Term Life Insurance?

There are two different types of life insurance, term life... Read More

An Intro To Life Insurance

There are many options available for life insurance, and for... Read More

Car Insurance No Claims Bonus Explained

No Claims Bonus is a term used to describe the... Read More

How To Take The Guesswork Out Of Buying Term Life Insurance

Protecting your family is the single most important thing any... Read More

Saving on Home Insurance: Tips for Cutting Costs

Everyone is searching for a way of cutting costs, a... Read More

Home Insurance: Premium Protection In Case Mishap Takes A Rain Check

My whinstone house my castle is, I have my own... Read More

Motor Insurance with Pass Plus

Is pass plus really worth it? What motor insurance discounts... Read More

Which Car Should You Own To Keep Your Insurance Rates Most Affordable?

Do you consider the cost of insurance before you buy... Read More

Do Insurance Premiums Increase Every Year?

Many people ask, "If I am supposed to get a... Read More

The Need For Life Insurance

A person needs to reexamine their life insurance needs every... Read More

Senior Life Settlements- A New Financial Dawn Emerges

When delving deeper into the market-driven research on the myriads... Read More

Long Term Care Insurance - Low Cost Alternatives For Budget Conscious Seniors!

With Nursing home Cost's running $4,000 to $6,000 a month... Read More