Ieuter Insurance Group Blog

All You Ever Wanted to Know About Insurance

How much life insurance do you need?

What would your family do if you died tomorrow? That is a tough question that you need to spend some time thinking about.  Will your family  be able to maintain their same lifestyle?  Do you have a lot of debt?  Young kids?  A business partner?  A special needs child or parent you are caring for?  A non-income producing spouse? 

 

Everyone’s situation is different, but we’ve found a simple formula that works pretty well: 

                Loans—What  would it take to pay off all your debt?  Are you planning on upgrading  your home in the future or buying a second home?   

                Income—Is your spouse working?  If all your debt is paid off, can your spouse maintain the same lifestyle?  Most families need between 5 and 15 times their income of life insurance.      

                Final expenses—Funerals can be pretty expensive. 

                Education—Do you plan on financially helping kids with college?  (Newborns are projected to be near $300,000 for a college education!)  Do you have a plan to fund their education?  If you pass away, will your spouse have to go back to school? 

 

There is definitely a lot to think about! Reach out to your friends at Ieuter Insurance Group for help with selecting a life insurance policy that fits your needs.