Calculating Your Coverage Needs

Calculating your coverage needs is another crucial step in finding the right plan. To find out the coverage level you need to keep your family protected, you need to consider several areas:

Current lifestyle costs:

If you’re looking for a life insurance plan to help your family maintain their current lifestyle if you were to pass away unexpectedly, there are many things to consider. For example, you may want to insure the primary income earner to ensure that your family’s income would be replaced, at least for the short term. You can also consider adding coverage for large continued expenses in your life, such as mortgage payments and childcare costs. You may also want to consider insuring the primary childcare provider. Many people don’t realize just how expensive childcare is if a family member cannot care for the children. Taking out insurance coverage to help cover these expenses can limit the financial implications of losing the main caregiver.

Future expenses:

Future expenses can include anything that isn’t covered by your general day-to-day living expenses such as your children’s college education, retirement living for a spouse, end of life expenses, wedding funds, property down payments, and any other significant expenses you predict in your family’s future.

Estate planning:

Life insurance is a crucial part of estate planning for many families, whether providing a lump sum to help with estate taxes, taking advantage of tax benefits, leaving a legacy to a loved one or charity, or helping your spouse with living expenses during probate.

• Your coverage needs are unique to you, so you must work through your existing, future, and estate needs to develop a full understanding of the amount of coverage you need and how long you need it. Using the online life insurance calculator makes calculating your coverage needs quick and easy: https://lifehappens.org/life-insurance-needs-calculator/