Be sure to determine how much life insurance your family needs!
Life insurance helps keep your family protected even after you’re gone. From funeral costs to mortgage payments, the financial assistance it provides helps alleviate any financial burdens left on your family. However, despite the fact that life insurance will give your loved ones coverage, you need to be able to determine how much coverage your family needs. Too little and they may struggle to get by, too much, and you’re paying more than you need to spend. Learn how to determine how much life insurance coverage that you need.
Calculate Your Current Income.
Start by looking at your income. Use your income as your guide to determine how much money is coming in over the course of a year. If you were to pass on, how much money would your household lose? It should give you a good idea of how much money you need in a year so you can get coverage to cover your lost income.
Look At Your Expenses.
In addition to your income, look at how much you spend over the course of a year. It may exceed your income. Take into account any outstanding debts, household expenses, educational costs, taxes, or funeral costs. Be sure to total up how much your extra expenses will cost and add that total to your life insurance coverage needs.
Estimate Future Costs.
In addition to your current expenses, you may need to cover future expenses. For example, you may need to cover unexpected medical costs or you may need to help pay for college tuition in upcoming years. Be sure to add future costs to your budget so that you can better determine how much coverage you need.
Ensure that your family is protected with enough life insurance coverage in Lombard, Illinois. Contact the professionals at Steve Wilk Insurance Agency for assistance finding the best insurance for your lifestyle. Located in Illinois, we serve all your personal and commercial insurance needs.