How Much Life Insurance Do You Really Need?


When it comes to purchasing life insurance, the first piece of the puzzle is to determine the correct
amount of life insurance to hedge against the risk of a premature death. Before getting into the weeds
of permanent cash value life insurance or term life insurance, it is apt to take a step back and make sure
you are establishing the right amount of death benefit in order to protect your overall financial goals. It
is also prudent to consider you and your family’s immediate needs such as a mortgage and other debt in
addition to ongoing needs, such as future income replacement. While there are multiple online life
insurance calculators that try to shortcut the process, they often do not address personally unique
ongoing life insurance needs.

Traditionally, financial planners will shoot from the hip and say, “a person should have 7 to 10 times
their annual income for the total death benefit,” but this is not the most accurate way to determine the
correct amount of total death benefit. In order to determine the correct amount of total death benefit
tailored specifically to your unique financial situations, please utilize Pacific Insurance Group’s Life
Insurance Needs Calculator to address your immediate and ongoing needs, and reach out to one of our
experienced independent life insurance agents in your area or call our main office at 425-246-4222 to
get more information.