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If you do have some people who rely on your income, life insurance would help ease the transition for them once you are gone. Life insurance can be an excellent way to provide financial assistance to those who rely on your income or support.

When you think about life insurance, your first thought might be how much do I need? How much life insurance do I need to be able to support my spouse and kids in case something unfortunate happens to me? If you don’t currently have a policy but are thinking about getting one, the answer is as much as possible. The cost of replacing your income and covering expenses can add up quickly.

Fortunately, there are several different types of life insurance that you can use to protect your loved ones at a fair price. Whether you have kids, a mortgage or both, there’s an affordable policy for you. Get informed with this article so that you can make the right decision.

Who Should Have Life Insurance?

People with dependents should seriously consider purchasing life insurance. This includes parents whose children are still minors, spouses who depend on your income, and anyone else who would struggle to make ends meet if you were to die prematurely.

Generally, life insurance is purchased by people who are in good health and have a long life expectancy. This is because the costs of your policy will increase as you get older.

If you have a young family and you’re the sole source of income, you should strongly consider getting a life insurance policy. The last thing you want is for your family to struggle financially while they’re still young.

You can get a policy when you are relatively young and healthy, and the policy will stay in effect for decades. Depending on your age and health, premiums can range from a few dollars a month to a few hundred dollars a month.

How Much Life Insurance Do You Need?

The amount of life insurance you should have will depend on a few different factors.

Couple planning their future family
Life insurance can help replace your income your family depends on.

The first is how much your family would need in order to replace your income to cover the basics: food, clothing and shelter? What about regular expenses such as cell phone bills, utility bills, car/home/health insurance?

The second is how much your family would need to pay off any debts and obligations such as mortgages, car payments, and other financial obligations that would need to be paid off if you were no longer around. If you have young children, how will their future college education be covered?

Generally, you’ll want to have enough life insurance to pay off any debts your family would have to take on if you died and to cover gaps in your family’s income. The average person has $50,000 in debt, while an average family has $100,000 in debt, so you’ll want to make sure your family is taken care of in the unfortunate event of your death.

Good Reasons to Buy Life Insurance

The most common reasons to buy life insurance are:

Pregnant couple and their two children. Life insurance can ensure their financial future.

You have dependents who rely on your income so they will continue to have a roof over their head and other life’s necessities.

Life insurance can help maintain your family's quality of life.

If you’re the only one bringing in a paycheck, your family would struggle if you died and didn’t have life insurance.

Buying your first home? Protect the mortgage payments with life insurance.

You have a mortgage you want to pay off. If you die, your life insurance death benefit will go to pay off your mortgage or keep up with the payments.

With life insurance, your family will not have to stress over bills.

You have debts you want to pay off.

If you die, your life insurance death benefit will go to pay off your debts. This way, your family won’t have to take on any extra debt.

Young woman starting college, thanks to the life insurance policy her father had.

If you die, what will happen to your child’s education that you would have help pay for? Life insurance will help pay for your child’s future education.

Financial gifts to grandkids using life insurance

Life insurance policies allow you to leave a gift to your family in the event of your death. This is a great way to leave a lasting gift to your loved ones.

A death benefit is a guarantee that your survivors will be taken care of no matter what happens to you. Death benefits are paid out regardless of your health when you buy a life insurance policy.

What Type of Life Insurance Should You Get?

What type of life insurance you should get depends on your specific needs. There are two main types of life insurance policies: term life and whole life.

Term life insurance – This policy is a limited policy that will only pay out if you die within the term of your policy. This type of policy is generally less expensive than whole life insurance, but it only covers you until the end of the term. This means that if you get really sick and have to stop working, this policy may not be enough to cover your family’s expenses.

Permanent insurance – This policy is a permanent policy and will stay in effect for the rest of your life. This means that even if you get really sick and have to stop working, this policy will be enough to cover your family’s expenses.

Compare other types of life insurance available here.

How Much Does Life Insurance Cost?

You can generally get life insurance quotes online. This is a great way to compare different providers to see which one offers you the best deal.

The main factor that determines the cost of your life insurance policy is your health. If you’re in great health, you’ll likely be able to get a better deal than someone who has a chronic condition such as diabetes or asthma. Generally, the younger you are, the less expensive your life insurance policy will be.

While life insurance is generally designed to last for the rest of your life, you may be able to lower your costs by getting a limited death benefit. This means that the life insurance policy will only pay out a certain amount of money after you die.

2 Ways to Pay for Your Policy

There are a few different ways you can pay for your life insurance policy. Each state has different laws, so make sure you check the laws in your state before picking a payment method.

Paying in full – Some insurance providers allow you to pay for your life insurance policy in full. This means you’ll pay the full amount of the policy all at once. This is generally only an option if you have a lot of money saved up.

Paying monthly – Most insurers will allow you to make monthly payments for your policy. This means you can pay for your life insurance policy over time without having to come up with a large chunk of money all at once. Some insurers may allow you to set up an automatic payment plan so you don’t have to think about it.

Summing it up

The amount of life insurance you need will depend on several factors. If you’re thinking about getting a policy, you should do your research to pick the best policy for your situation. There are a few different types of policies, so you can pick the one that best fits your needs. You can also choose how you want to pay for your policy. There are a few payment options that will allow you to make monthly payments over time.

Now you know what type of life insurance you need, how much you need, and how much it will cost. Now is the perfect time to get a policy to protect your loved ones.

Besides financial prepping, be sure to also have your emergency preparedness in order. Here are various topic you can research.

To get a life insurance quote, check out my insurance agent at New York Life.

Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.

About Post Author


During the day, Ms. Williams is a compliance officer for a major insurance agency in Florida. In her free time she enjoys the great outdoors and share her passion for the adventures life has to offer. She now shares her passion for Emergency Preparedness, making it simple for everyone to start.
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