Calculating Your Need

What is the correct amount of life insurance?  Many agents use rules of thumb and will tell you 10 times your net worth; others, 10-15 times your annual income.

Rather than pull a number out of a hat, we believe in a balanced, needs-based approach.  In other words, what is a realistic number that would allow your surviving family members to continue on without making deep disruptions in lifestyle?  Our needs calculator helps determine immediate actions, such as final expenses, mortgage or debt elimination, education, and emergency funds.  We also look to the future.  How much income will your surviving spouse need to continue living and providing a good home, and how much money will have to be set aside to generate that income without diminishing its value too soon?  The Needs Calculator is designed to look at these issues while considering other sources of income your surviving loved ones may already have.  This way, you can have an accurate estimate without getting too much coverage or being surprised if what you thought was adequate turns out to be too little.

The calculator gives us a good starting point to assist you in finding the proper amount of coverage and balancing that against your budget.  After all, what’s the point of having all the coverage in the world if you can’t afford to keep it?  For many clients, this gives them comfort in knowing exactly why they have the policies they do, and for others it may serve as a planning tool for what they aspire to achieve.