How Much Life Insurance Do You Really Need?

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How Much Life Insurance Do You Really Need?

Longmont Life Insurance

We understand that a conversation about life insurance is not always an easy one, but should be part of your long-term planning. There are many good reasons to consider purchasing life insurance. Life insurance gives your loved ones the resources to pay off debt, continue living the same standard of living and provides added financial security.

How Much Life Insurance Do You Need?

  1. How much will be required to meet my family’s financial obligations?
  2. How much debt do you have other than your mortgage?
  3. What are the future income needs of my family?

Once you know this, we can provide you with limit and pricing options. Here is an example for you to consider.

Mortgage/rent                          $1,200

Expenses                                    $3,000

Savings                                      $    800

Under this example, it takes around $5,000 of after-tax income to sustain your family. If you are gone, we might expect your family to need that same amount of after-tax income still. You would need an investment amount of $500,000 to see an average return of 10% or $5,000 annually. We understand that investment returns change over time, but this is a reasonable approach.

Click here to use our income replacement chart

We recommend term life insurance which is very cost effective.  The price is based on how much coverage you need, current age, and length of time you would like the coverage. You pay as you go and can drop the policy at any time.

Check out 7 Insurance Policies You Can’t Go Without by Dave Ramsey!

For the purchase or information on any kind of personal insurance products for clients in Longmont, Colorado, contact our agent Steve Longenecker.

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