There are two different policies when it comes to life insurance — whole life and term life. Whole life insurance will cover you for the rest of your life and term life will cover you for a specific period of time.
Regardless of the policy you decide on, life insurance is necessary if you have a family that relies upon you.
Everybody’s situation is different so theres no perfect answer. Generally, you want to determine an amount that will cover the immediate and ongoing costs if you pass away so that your family or other financial dependents can continue their current way of life.
Consider the following:
1. Outstanding debt you don’t want to leave behind
2. Financials you already have that your family can fall back on.Determine how many years you would need to cover these living expenses and offset it against any savings/assets that could be used in the event of your death. This may include:
3. Your families ongoing living expenses
4. Length of coverage to choose. Some things to consider when determining your length of coverage include: