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How Much Life Insurance Do I Really NeedInsurance is the word that gives you a trust on your future. You may know that you need a life insurance but how much? Most of the people feel confused with the question how much life insurance do I really need. Determining a life insurance type and coverage is just like a guessing game.

How much life insurance do I really need is a very complicated question but there are some rules to answer it.

The most basic rule of calculating the life insurance coverage is the annual income of an individual. You can purchase a life insurance with the coverage of 10 to 15 times of your annual income. It is the simplest way to calculate but you know life is not so simple.

You must keep in mind your family cost per month before choosing a life insurance policy. Like if you have $5000 cost per month, car loan and mortgage, then you should choose such a coverage that can allow your family to get $5000 monthly as well as the installments for the loans. It is helpful for your family when you are passed.

Inflation rate is another thing that is a big concern for you. You are spending $5000 per month for your family now but after few years you may have to pay $6000 per month or even more. It happens because of the increasing inflation rate. You must take at least 120% coverage of your monthly cost so that your family can maintain the standard of living even after few years.

Another fact about how much life insurance do I really need is your children activities. Are they still dependent on you or not? If they are dependent on you then you must choose the policy in such a way so that your children can get the money for their education after your passing.

Before answering the question of how much life insurance do I really need, you must decide which loans you have and how you are going to deal with them. The benefits your family will get from the insurer will be very helpful to pay all the loans.

Funereal expense is increasing day by day with a high speed. It has become a very important matter that you must keep this matter on your mind while getting any life insurance. If you family can’t pay all the expenses with the insurance money; it is a valueless so you should be very careful.

A Big Question: How much life insurance do I really need?

Finding a perfect answer to this question is not possible because financial structure and other related things are changing regularly. But if you do some basic calculation and thinking, you will find the best policy quickly.

There are mainly two different types of life insurance. Term life insurance and whole life insurance, choosing one is very difficult. It completely depends on your need. At the beginning of the age choosing a whole life insurance is better idea. As your age will increase you will hardly get a whole life insurance. Term life insurance offers 10 years, 20 years and 30 years policies, you have to choose one.

Now you have to choose which one you need. If you are a single person you actually don’t need any life insurance. But you can purchase it as a long term investment but only term policy is applicable for this. There are some calculators which can help you to find a good policy according to your need. Search the free quotes for the best suitable policy for you. First note the answers for how much life insurance do I really need before purchasing a policy.

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