How can you determine the amount of life insurance you need? You’ll want to ensure that you get adequate coverage without overpaying for coverage you don’t need.
- Time Left until Retirement – Many peoples’ biggest asset is working and earning income. Since most breadwinners purchase life insurance to replace that lost income in an unexpected death, you should consider how long you need to or plan to work. If you only plan on working another ten years, you may not need more than ten years of life insurance coverage, and so on.
- Spouse’s Income Potential – If your spouse does not currently work, would they be able to if need be? What is their income-earning potential based on experience and education?
- Consider Your Debt – It’s common to purchase life insurance to cover your mortgage, credit debt, or business loan. Consider how long the term of payments is. If your mortgage will be paid off in 30 years, do you really need whole life coverage?
- Consider Your Savings & Investments – If you are actively saving money to your 401K or IRA, etc., and your debts are decreasing, your need for insurance may greatly diminish in a short period.
It’s important to consider all of the above when determining how much life insurance you need. Speak with a Cosmo Insurance broker today to get started.
Cosmo Insurance Agency is a full-service independent insurance agency based in Hackensack (Bergen County) and Lakewood (Ocean County), New Jersey that offers an all-encompassing range of insurance options for both individuals and businesses. Cosmo keeps its promise to assure an efficient and creative approach to the services we offer. Each of our clients experience a personalized and long-term relationship with us. Our New Jersey based team of health brokers guides our clients in helping them choose the most cost-effective options. By incorporating our knowledge of the insurance guidelines for healthcare, employee benefits, life insurance, self-insurance, dental, disability, and long term care insurance, we keep our clients up-to-date with affordable plans that cover all their specific insurance needs.