Life insurance is not the same for everyone. What is the right amount of coverage for one person may not be right for another. It is vital to make sure your dependents are able to survive financially and that you discuss your needs in-depth with your independent insurance agent. At Arial Insurance Group in Chicago, IL, we are happy to discuss the insurance options that we offer and personalize a plan just for you.
To determine how much life insurance is enough, it is vital to take several factors into consideration:
- What your income is
- Your dependents
- The age of your dependents
- What percent of support they require
If your income is low, you will need less life insurance to replace it than if you have a high income. The object of life insurance is to replace your income to provide for your dependents if you are not there to do it yourself.
Who counts on your income to survive? Is it just your partner or do you have dependent children?
The age of your dependents is important when considering the amount of life insurance you will need to keep them in the lifestyle they are currently enjoying. How many years will the support need to be provided?
What percent of support
Does your spouse or partner work? How much of the income that you provide will be necessary to maintain their lifestyle? Will it be 50%, 75%, or 100%?
Once you have all of this information, you can come up with a figure. Take the number of years times your income and then the percent of it that is required. For instance, 50% of 10 years of $50,000 is $250,000.
We Can Help You!
Give us a call at Arial Insurance Group or drop into our Chicago, IL office for a free no obligation quote.