_dsc0160Calculate Your Life Insurance Needs

How much life insurance do you need? You can begin determining that by reviewing the current expenses listed on your spending plan, then move on to determining expenses you think you might have in the future. And because the cost of things generally go up (inflation), you’ll need to calculate how much the cost of something at today’s prices will cost many years from now. 

For help in determining how much life insurance you need, speak with a life insurance agent or financial advisor, preferably one with experience in working with families of children with disabilities. To learn more about life insurance and the issues related to it, visit the Insurance Information Institute at www.iii.org.

Areas to Consider When Calculating Insurance Needs

  • How much money your family needs to live on now—the day-to-day expenses you listed in your spending plan.
  • How much money you will need to finance your family’s future expenses, such as college, the long-term care of your child with special needs, career training, and the long-term care for you and your spouse.
  • How much you owe now. If you created a Debt Reduction Plan, use the total debt amount you listed. Consider future debt you might incur for other financial goals around education, career, and retirement.
  • Medical expenses that are not covered by your health care plan.
  • Funeral expenses and final estate-settlement costs.