At Bryan Insurance Agency, LLC in New Windsor, NY, we know that choosing a life insurance policy is as sophisticated as it is essential. Selecting the right coverage amount is an integral part of keeping your family financially secure.
The amount of coverage you need will depend on your individual situation, but the basic formula is a good starting point. The simplest way to calculate how much life insurance you need is to take your net income and multiply it by a number between ten and fifteen. This will replace your income for ten to fifteen years in the event of your death. However, the best method takes into account your personal situation.
With this method, you add up your financial obligations. This includes replacing your income for the number of years your family will need it. If you are near retirement, this may be less. If you have young children, the amount will be more prominent. Consider how long any dependents you have will rely on your income.
Next, you’ll need to add up your debt. This includes mortgage, loans, and burial expenses. Everything you would need to pay to get and remain debt-free. If you have children, consider college expenses as well.
Add up the income you need to replace and your debt. This is the amount you need to reach to keep your family financially stable if you pass away. You can then subtract your assets. This can include savings and investments. Don’t include your home unless your family will sell it upon your passing.
At Bryan Insurance Agency, LLC, we provide life insurance to New Windsor, NY residents. Let us help you determine the policy and coverage you need to protect your family. Contact us today to get started.