The question that makes up the title of this blog post is an important one. It is a query that every American should explore as they consider the financial future of both themselves and their loved ones. A life insurance policy is an effective way to provide support for a family following a breadwinner's death and can be used to pay off mortgages, auto loans and other forms of outstanding debt, as well as establish an alternative means of income for the immediate future.
Yet how much coverage is enough? According to industry experts, there are a number of considerations that can help you determine whether or not your existing policy is sufficient to cover the costs that would impact your family following your death.
The easiest method involves some simple calculation. First, you'll want to compute your average monthly expenses versus average income. If both you and your spouse benefit from significant sources of revenue, it's possible that you'll need to acquire a policy that can replace it without complication. You'll also need to factor in overall debt levels, which range from your home loans to credit cards. Given the complicated atmosphere following the death of a loved one, it may be beneficial to factor in paying down these balances when the moment comes.
"Figuring out your life insurance needs sounds trickier than it actually is," Larry Light, a personal finance specialist, wrote in a Forbes piece published earlier this year on the topic. "The important thing is first determine whether you need life insurance, which kind is best for you and carefully calculate how much you need. All we have to do is be clear about what your situation is, what risk to mitigate and voila, you have your answer."
Once you know how much you'll need, you should seek out a life insurance quote to make sure you get the best deal possible. Explore LifeInsure.com today to access comprehensive life insurance policies that guarantee your family's financial security.