How Much Term Life Insurance Do I Need?
How much term life insurance you’ll need depends on a number of factors. Many people base their life insurance needs on the income they would need to replace and any debts.
For example, an average family might choose the coverage, or “face amount,” of their term life insurance policy based on five to ten times their gross income, plus any other needs such as paying off the mortgage and debts. You might want to consider future expenses as well.
Your coverage should factor in lifestyle, financial goals, debts and often-overlooked expenses, such as additional childcare expenses.
When determining your term life insurance coverage needs, consider the following:
The size of your family and ages of your family members
The standard of living you’ll want them to be able to maintain
The costs for childcare or care for an elderly parent, if you are an in-home caregiver
Future expenses such as education, health care or mortgage costs
Final expenses, such taxes, legal fees and funeral costs
You can find our handy term life insurance calculator here to start determining how much term life coverage you may need.
Without talking to a licensed life insurance professional first, you may be signing up for too much life insurance or too little. At Matrix Direct, our licensed life insurance specialists take the time to talk to you—at no charge and with no pressure—about your specific goals.
We can then give you a personalized term life insurance quote for precisely the amount of life insurance you may need at a very competitive price.
Your family’s needs are unique. Talking to a licensed life insurance professional can help you get the information you need, so you can make the right decision about term life insurance for your loved ones.