Investing in life insurance is one of the most important investments you’ll ever make for your family. However, the one big question you probably have is how much life insurance is right? While that is a personal decision the team at STate Insurance Solutions can help you determine the amount of money your family will need. So if you live in the greater Dallas, TX metro area, the insurance provider is here to help.
Income Times 10
A good starting point for how much life insurance is right is to determine how much your annual income is and multiply it by 10. This will give your family around 10 years worth of money after they have claimed the life insurance policy. Of course, after inflation and some other final expenses, the exact number of years will go down, but this is a good place to begin.
Cover Current Debts
Beyond your income times 10 you should consider the current debt you have. This includes everything from student loan payments and credit card debt all the way to your home mortgage. Include these amounts with the overall value of your life insurance policy.
Money For College
Putting money away for your child’s college fund is important as well. A good place to start is $100,000 per child (if you want to save for in-state tuition), or at least double that if you’re considering an out of state school for your child.
Whether you live in metro Dallas, TX or just have questions about life insurance, State Insurance Solutions is here to help. Selecting the right life insurance policy is critical, as is determining how much you should select. Whatever you decide on, just know you’ll be providing for your family for years after you are gone.