We have all struggled with this one important question: How much life insurance should you buy? I can help you answer that question in 2 easy steps.
1. Cash Now
If you passed away, your family would need an instant infusion of cash to pay for any last medical expenses and a funeral. But how much will that be?
The average cost of a traditional funeral is between $7,000 and $10,000. That’s not counting any doctor or hospital bills your spouse may be left with after you’re gone. If you’re in doubt, leaving $10,000 to $15,000 to handle these expenses is a good place to start.
2. Cash Later
Once the funeral and medical expenses are paid, your family faces a new set of challenges: bills for the mortgage, cars, insurance, utilities, and more. Plus, you may have kids you intended to help through college.
You’ll want to add up things like the payoff amount for your mortgage, any credit card or student loan debt, ongoing living expenses, and an emergency fund that can see them through a job loss or relocation.
Need help figuring out specific amounts for your new coverage?