Since life insurance is money your loved ones can use after you are gone to help pay for things like the mortgage, college tuition/child care, and everyday expenses like food and utility bills, you’ll want to make sure there aren’t any gaps in your plan’s coverage amount… and what they’ll need when the time comes. Financial stress can impact your loved ones if they have to struggle to pay bills after you’re gone. When you help protect their future with the right amount of coverage, they will not only have help making ends meet, they’ll be better able to reach long-term goals like college and the wedding of their dreams.
So how much might you need? Our easy-to-use Life Insurance Needs Estimator
gives you a personalized estimate based on these five factors.
The more you have, the more coverage you may need.
How many dependents you have and their age determines how much coverage you may need. For example, the younger they are, the longer they’ll need to be cared for. If you’re single or without children, others may rely on you for care after you are gone (such as siblings or parents).
3. Debt/Financial responsibilities
Your loved ones may have to pay off your mortgage, car loans, credit card balances, student loans, and other debt after you are gone.
4. Existing coverage
If you already have coverage through your employer, that’s great. But it may not be enough. Having a supplemental Plan through the AICPA will not only help give you added protection, but you can also keep your coverage as long as you remain a member, even if you change jobs.
5. Current savings
If you already have savings for your future that can be used to help cover expenses in case the unexpected happens, the amount you have stashed away may impact how much life insurance you need.