Protect What’s Important With Life Insurance From Caple Howden Insurance
In today’s financial environment, it’s important to know that there are some things you don’t have to worry about. Life insurance can be the foundation of financial security for you and your family. It can be the base upon which other insurance and investment decisions are built.
How Much Life Insurance Do I Need?
It’s not really about how much life insurance you need. It’s how much money your family will need after you’re gone.
We’re here to help you make important decisions about protecting your loved ones.
Choose the right level of coverage
When you’re buying a life insurance policy, it’s important to choose the right amount of coverage. You don’t want to have too much − and pay for protection you don’t need. Neither do you want to have too little − and leave your loved ones under protected.
Determine your life insurance needs
There are two commonly accepted methods for calculating the amount of life insurance coverage you should carry.
The lump sum need method calculates the amount needed to pay:
- Outstanding debts
- Funeral expenses
- Household expenses
- Emergency needs
- Educational costs
The income replacement method calculates the amount needed to replace a percentage of your income for a specific number of years, usually until your youngest child is out of college or until your mortgage is paid off.
In addition to these two methods, you may also want to consider other needs. For example, would you want to provide the financial means so your spouse wouldn’t have to work for the first year after your death?
Calculate future spending
When you’re determining your family’s future financial needs, remember that you don’t have to provide 100% of the income that will be needed.
For instance, if you’re planning to provide $100,000 for your child’s college tuition in 15 years, you don’t need $100,000 now – you need an amount that will potentially grow to $100,000 by the time college starts.
The potential to have your policy’s cash value grow over the years to cover future expenses is one of the advantages of permanent life insurance.
Ready to take the next step?
Determining the right insurance coverage for your needs is an important decision. For help with your life insurance needs, call us at 407-657-8808 and one of our life insurance expert can use their knowledge and experience to help you by:
We can help you protect your family’s security, Call us today.