Life insurance is not the same for any two people. How much life insurance is right for you will not be suitable for someone else. Your life and dependents will determine the amount of life insurance right for you. We are here to offer our expertise at Westco Insurance LLC in Colorado Springs, CO. As independent insurance agents, we work for our customers, not the insurance companies.
Several different things factor into how much life insurance you need. All of them are important.
How many dependents do you have?
The number of people who depend on you to provide for them is important when determining how much life insurance you will need. Do you provide for elderly parents or a dependent sibling? Do you have a spouse or partner, and do you have children? It costs more to care for multiple people than it does for only one person.
How many years will you need to provide for?
If you are supporting elderly parents or a sibling, how many years will that be? Do you have a spouse or partner, and are they employed? Do you have children, and what are their ages? Young children will require longer care.
What is your annual income?
Your yearly earnings will significantly determine how much life insurance you need.
Once you have the answer to the above questions, you will know where to begin your calculations. For instance, if you have young children, you may need to provide for them for 15 years, and if your income is $100,000, that means 1.5 million in life insurance. This is a rough estimate; consider your current lifestyle and what it would cost to maintain.
Contact Westco Insurance LLC in Colorado Springs, CO when you are ready to discuss your life insurance needs.