Friday, September 30, 2011

How Much Life Insurance Do You Need?

Life insurance is intended to offer financial protection to your dependents upon your
death. Obviously the greater the value of the life insurance policy you purchase, the more
security there will be for your family. But as size of the premiums you need to pay depends
not the value of the policy, a balance must be struck between managing your current cash
flow, liabilities, investments and the size of the policy you take. A few of the basic facts to
keep in mind when evaluating the amount of life insurance you need are:

• The younger your children, the more money that their care and education will
require. The life insurance you have should reflect this.
• If both spouses are earning, then each one should have a life insurance policy and
each policy should be adequate to cover the financial loss of a spouse’s death.
• If one spouse works in the home, that spouse should be insured for at least the
amount that will be needed to cover the costs of paying for the work that spouse
used to do.
• Even if you have no dependents and you have enough in the way of savings for one
spouse to live comfortably after the other’s death, there are still estate taxes and
funeral costs to be met and the insurance coverage should meet these demands.

There are many other factors that also need to be considered when calculating the amount
of life insurance you need. Allied Brokers, with over half a century of insurance expertise
behind it, will be happy to help you get the life or other insurance that is right for you
and which will provide you and your family the maximum protection. Visit the website at
http://www.alliedbrokers.com/ or call1-888-505-7988 to ask for a free quote.

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