How much life insurance do I need?

If you are in the process of shopping for life insurance here in the Edina, MN area, you may be asking yourself: "How much life insurance do I need?" The answer to this question is not a one-size-fits-all answer. Instead, the right amount of life insurance coverage is determined by several factors, such as income, financial obligations, and other aspects of your life. At Central Lakes Insurance Brokers, we have some suggestions.

Calculate your family’s current income, debts, and expenses to know how much coverage you need. This will give you an idea of how much money your family will need if something happens to you. Once you have completed this step, consider any other future needs, such as college tuition for your kids or retirement funds for your spouse. Then add all these numbers together to arrive at a total dollar amount that would cover those needs in the event of your death. 

The next step is to decide which type of policy best suits your needs and budget. Some term-life policies offer coverage for a specific period, while whole-life policies provide permanent protection with an investment component built into them. After evaluating both types, determine which provides the most security and value to your and your family’s needs. 

The final step is to contact an insurance agent or company who can help you choose the right policy and determine the exact amount of coverage needed. For more information, call us at Central Lakes Insurance Brokers today. We are proud to serve the Edina, MN area.