Determining How Much Life Insurance You Need
Factors to consider as you buy life insurance.
Finding the right life insurance in Orange, California can be a daunting task. One of the hardest parts of choosing the right life insurance is trying to determine how much coverage you actually need. Here are some of the factors you need to consider when choosing a life insurance policy.
Debts
Your life insurance policy should have enough coverage to take care of any of the debts you might leave behind. To get a better idea of how big a policy you need, add up all your debts including student loans, credit card debts, and your home mortgage. This will help you understand what your policy will need to cover.
Educational Expenses
If you have children, then you should make provision for their future educational expenses. A good rule of thumb is to make sure that your policy includes at least $100,000 per child to meet their tuition and other financial needs.
Lost Income
Another thing you should consider is how the loss of your income will affect your loved ones. That’s why your life insurance should cover your lost wages. Simply take your annual income and multiply this number by the number of years you would like to replace your income for. This final sum will also help you understand how large your policy should be.
Funeral Costs
With the average funeral costing upwards of $7,000, this expense is not something you should overlook. Make sure your funeral and burial costs are something you keep in mind as you select a policy.
These are the major factors you need to consider as you are selecting the right life insurance for you and your loved ones. Do you have more questions about your life insurance in Orange, California, then speak to the professionals at Remland Insurance. Our dedicated experts are ready assist you with all your coverage needs.
