Financial professionals

How much life insurance do I need?

Parents helping two kids with homework

Although it is easy to see the benefits of having life insurance as a way to protect your family, it is more challenging to determine the right amount. To help you figure out how much you need, here are a few starting points to consider.

Calculate your potential premiums

There are various ways to get a ballpark figure on how much life insurance coverage the average family should have, but one of the easiest places to start is a life insurance calculator. This term life insurance calculator will calculate annual life insurance premiums based on the coverage amount you input. You may be surprised to find that term life insurance is more affordable than you thought.

Think about your expenses

While a calculator can be a place to start, the figures are just a guideline and don’t reflect your unique needs. Talking to your family and loved ones will help you identify those needs. Here are some questions to consider:   

  • What’s the plan to move forward if you’re no longer around to help care for the family?
  • What are the total expenses of your mortgage, taxes, and other monthly bills?
  • Do you have any outstanding debt?
  • What is your plan for college tuition costs?

If you can project these expenses out over five years, you’ll have an idea of the minimum life insurance coverage you’ll need.

A financial professional can help

You and your family may have other unique needs that should be addressed, too. Perhaps you own your own business, have a blended family, or care for a family member with special needs.
Talking with a financial professional is an important step in helping you find a solution that fits your unique needs.

Not only do they bring expertise in helping you design a strategy, financial professionals can ask helpful questions to guide your conversations, and help you think about financial challenges from a different perspective. They will help you determine how much coverage you need and can also show you ways life insurance can be used beyond helping to provide protection for your loved ones.

This material provides general information that is designed to be educational in nature and is not intended as specific tax or legal advice to any particular individual nor the law of any particular state. Please seek the advice of a qualified tax or legal professional for your specific situation.

Products are issued by and guarantees based on the claims-paying ability of the AuguStar Life Insurance Company and AuguStar Life Assurance Corporation. Product, product features and rider availability vary by state. Issuer not licensed to conduct business in NY.

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