Life insurance is a good idea. Most estate plans should include a life insurance policy. Even if you think you have enough to cover all of your expenses, unforeseen circumstances can make it necessary to have basic life insurance coverage. How much should you have and what should you cover? Let’s take a look.

How Much Insurance?

Regardless of how much you have saved, you want to make sure that you can cover essentials should something go horribly wrong and drain your assets. Some things to consider covering would include:

  • Remaining Mortgage Costs
  • Funeral Costs
  • College Tuition for children r grandchildren
  • Car Loans
  • Other Outstanding Debts

Start your calculation by looking over your outstanding debts. Once you have made a list add values to all of the items on your list. This should be able to give you a base line for just how much you should have your coverage for. Finally you might want to take into account any savings goals you might have like tuition or providing for your spouse. This is a great starting number.

Adjust Up or Down

The number that you calculate really is a starting point. You can adjust up or down from that number based on any other factors that you might be concerned about. Term life can be had at very reasonable rates and should cover any of your necessary expenses.

If you have any legal questions regarding estate planning or other elder law topics, contact the experts at Stano Law Group.