How Much Life Insurance Do I Actually Need?

August 18, 2022 | Tom Peterson

When it comes to life insurance, it is essential to define what you want to protect in the event of your passing. Determine your goal: perhaps you want to leave a legacy with a loved one or make sure that there are no unpaid debts for your family to remain responsible for. Let’s look at what to consider when determining how much life insurance coverage will meet your needs. 

What to Consider When Deciding How Much Life Insurance You Need

As financial responsibilities continue to increase with the rising cost of living, these growing expenses may often only be affordable with the funds left behind from a life insurance policy. If someone will be impacted financially by your passing, a life insurance policy can cover financial obligations in the event of your death. 

Is my goal to:

• pay off any debts, such as a mortgage
• replace a lost income
• leave funds for a child or grandchild
• fund a loved one’s education
• leave an inheritance
• take care of any burial or funeral expenses
• accumulate a lump sum of cash value 

Not only are these important to consider when choosing the death benefit amount, but you will also need to document your intent and goals to guide family members and loved ones in the event of your passing. 

Policy Differences

Each type of life insurance policy may have a different impact on the goal you have set with the amount of death benefit you have chosen. Make sure you are appropriately educated on the ways the different types of policies can affect these goals.

Next Steps

Keep in mind that not everyone will be approved for every kind of life insurance policy. To navigate which life insurance options may be best for you to meet your goals and how much life insurance to buy, have a meaningful conversation with a life insurance professional.

How Twin City Underwriters Can Help in This Process

At Twin City Underwriters, Inc. (TCU), we have been helping people make sound insurance decisions for over 50 years. We understand the significance of protecting what is important to you. Our goal is to help individuals and families determine what life insurance policy is best for their needs.  

We have stable, long-term relationships with many leading life insurance companies. We use those relationships and our experience to walk you through selecting and applying for a suitable life insurance policy. In addition, we provide ongoing customer service as questions arise and your needs change.

At Twin City Underwriters, we know that individualized attention to a client’s personal situation and needs are especially important, which is why we take the time to understand you and your goals.

Have your life insurance questions answered.  Call Twin City Underwriters to review your options today!