How Much Life Insurance Do I Need?

As every parent knows, death is hard—but it can be a blessing in disguise. Instead of grieving over a lost loved one, a parent who has a life insurance policy will be able to make a transition smoother. A 100 000 life insurance policy, for instance, can be used to cover a widow’s expenses, be used as a means to pay for their children’s education, and afford much more. A life insurance policy can also help pay the costs of a funeral, as current life insurance can be used as payment for a funeral home.

Unpredictability of Life

Life is unpredictable. Every day, people go through life writing new chapters. Yet, some people find out that their lives end before they even start. Some die in their 80s, and some die in their 20s. Some die in car accidents, and some die in murder. Life insurance can protect you and your family from such sudden and unwanted situations, but there are so many types of insurance policies out there, it is not easy to choose the right one.

Unless you have a death wish, the only way you should buy life insurance is if you want it. Unfortunately, we are not particularly well-informed about life insurance, and the entire concept is confusing to many people. There are many diverse types of life insurance available, and each one can be overly complicated and confusing.

Life insurance is a necessary tool to protect you from the financial devastation of death. Yet, for most people, it is not a top priority financially. Very few people get the amount of life insurance coverage they need simply because they do not know how much life insurance they should have.

Plan to have Life Insurance

Most people do not think about life insurance until they are forced to do so, but it is an important part of being prepared. It allows you to build savings, support your family, and protect your loved ones in case of your death. So, how much life insurance do you need?

One of the most common life insurance questions is, “What type of life insurance do I need?” Unfortunately, there is no simple rule-of-thumb answer. It all depends on your health, your family, your career, and your lifestyle.

The answer to this question can vary. First, you should consider your current financial situation. If you are married, double the amount you are currently paying for insurance. If you are single, you might pay one-half the amount that you are paying for insurance. If you are not yet married, then you might want to get a bigger policy. Finally, if you are living on your own, you might need a cheaper policy.

It is easy to get overwhelmed by the idea of purchasing life insurance. How much should you buy? What coverage should you buy? And how much will you need to set aside each month? The short answer is, we cannot tell you how much you need to purchase to ensure your family’s financial security. That is because the amount of life insurance you need is one of those things that changes from person to person. There are as many answers as there are people. Those that have the income who want to play it safe, and want everything covered, will tend to consider a 100 000-life insurance policy. They will want income and mortgage protection, and money for the education of children still to grow up, should the policyholder not be around or be too injured to work, in the case of accidents.

Amount of Life Insurance to Have

If you ask a dozen people how much life insurance they think they need, you will probably get a dozen different answers. Since we are individuals with unique life experiences, income, hobbies, and family needs, it is no wonder. We can all presumably agree that a crucial decision for us is how much life insurance we need.

The cost of life insurance varies based on an individual’s age, health, marital status, occupation, and the type of coverage desired. Also, your risk assessment for your occupation will determine the amount of insurance you need. Based on research, the factors that affect the cost of the most expensive types of life insurance include gender, age, marital status, occupation, health, and the type of policy.

If you are a healthy person who has been covered by a medical plan for a few years, you may not need a whole lot of life insurance. Your annual premium might even be enough to pay for a substantial policy. But if you have health problems, substantial coverage may be a necessity.


Although it is hard to know exactly how much we would need our life insurance policy to be, a 100 000-life insurance policy would ensure that we have enough protection for everyone should the worst happen. We need to think of what stage a spouse, son, or daughter, could be at in life when there might potentially be an unexpected death of the main wage earner. A younger policyholder should consider that their children may still have a lot of growing up to do and so incur much expense just from educational costs and the hobbies they wish to pursue. Life is unpredictable, but a large life insurance policy will provide that financial security needed to fund many future situations.

Speak Your Mind