How Much Life Insurance Do I Need?

The correct amount of life insurance depends on your specific situation and it is prudent to complete a life insurance needs calculator in order to make sure your loved ones are properly protected. There are multiple factors when calculating the correct amount of life insurance and it may require a little bit of homework to ensure accuracy. Click here to calculate how much life insurance you need.

Settlement Fund

When someone passes away there are typically final expenses for funeral costs and professionals to finalize the estate and transfer assets. The average cost in the United States to cremate a body is around $1,100, and the average funeral is around $10,000. On a $1 million-dollar estate the executor will typically charge around $20,000 to finalize everything and it usually takes 6 months to a year to go through the probate process. Lawyers will typically charge around $250 per hour or either charge by the hour or charge an agreed upon flat fee. Furthermore, the law requires all unsecured obligations such as uninsured medical and hospital bills, personal loans, and credit card balances must be paid before the heirs can receive any inheritance.

Mortgage Fund

Don’t forget to include your mortgage when deciding on the correct amount of life insurance. Following death, your home could become your loved one’s greatest liability. A mortgage fund can provide the money to pay this debt so your beneficiaries can continue living in home.

Education Fund

Lifetime earnings for a college graduate is generally 50% higher than for non-graduate and the majority of parents would like to see their children graduate from college. The average four-year cost of an in-state public college education today is over $91,000, if you have loved ones depending on your help, don’t forget to factor future education expenses into the equation.

Income Protection

The ability to earn a paycheck is often times taken for granted. If you think about the amount of money you will make during your working years, it is actually pretty amazing. Someone making $100,000 per year at age 40 means they will make $2.5 million dollars if they work until age 65 (and that is with no pay increases). In the event of a premature death, how long would you like to provide an income stream for your loved ones? There is no cookie cutter answer because everyone’s circumstance is different, take the time to evaluate what feels right for your situation.

If you would like to speak with an experienced life insurance expert over the phone, internet, or in person, call Pacific Insurance Group’s home office based out of Bellevue Washington at 425-246-4222 or go to https://www.pacificinsurancegroup.com/for a free instant life insurance quote.