How Much Life Insurance Do You Need?

Family life insurance and policy

Investing in the Right Amount of Life Insurance

Life insurance is one of the most overlooked insurance policies. It is also one of the most important since it provides financial protection for your loved ones after you are gone. Deciding how much life insurance to invest in can be a tricky situation. Keep these tips in mind to ensure that you have the right amount of life insurance for all of your needs.

  • Debt – make sure that you have enough life insurance to pay off all of your debts in full, including your car loan, credit cards, and mortgage. If you do not have enough life insurance to cover your debts, your loved ones would be left with the financial burden of making sure they got settled.
  • Income replacement – no matter if you are the main earner in your family or not, have enough life insurance to replace your income for, at the very least, one year so that they can continue living the same lifestyle they are accustomed to.
  • Future obligations – think of what you are planning on paying for later in life, such as college tuition for your children or a vacation home for your spouse. Make sure to invest in enough life insurance to cover the complete cost of any future obligations that you want to take care of.
  • Insuring loves ones – any relationships that would cause a financial loss if the other person passed away, such as your spouse or business partner, should be protected with the right life insurance policy.

For all of your life insurance coverage needs, contact the Prutting Insurance Group in Scottsdale, Arizona. As an independent insurance agency, we will work with you to ensure that you have the right amount of coverage to protect all of your loved ones, at the right price to fit your budget.