Ask an Agent and you will get different amounts. They will whip out the I-pad or Laptop and come out with a 25 or 30 page presentation of what you “Need”. As an experienced Agent, I work in reality.

The amount of Life Insurance needed is also equally important as to what you can afford and not go broke or have it lapse a year later where you have to start all over. What you pay monthly for Life Insurance is based on a number of factors such as your age, health, if you smoke, and the amount of death benefit needed among others.

Feel Free to download this Life Insurance Needs Analysis form for you use. Life Insurance Needs Analysis

Let’s take a look at reality in what needs to be covered with Life Insurance and I will offer the order of necessity as I see it.

Your actual Final Expense, the Funeral or Cremation.

When you pass away, we have to do something. We cannot just prop you up in a corner and Febreeze you every day. You need to either be buried somewhere or cremated. According to the National Association of Funeral Directors (NAFD), in 2017 the cost for an adult funeral and a vault was $8,755.00 and yes, it can easily go over the $10,000.00+ range and the Cremation cost with a viewing for an adult was $6,260.00.

The Mortgage

Can the surviving Spouse or Partner afford to stay in the House after you pass away or will they have to sell it and move away? The next item of importance of having Life Insurance is also paying off the mortgage after you pass away. This way if they prefer, they can live in the Home you built together. They would have to only work on paying the property taxes, utilities, groceries and other everyday expenses with their remaining paycheck. (I will get to that next)

Income Replacement

When you pass away, your paycheck from the JOB goes bye – bye as well. So the option of not having the surviving Spouse or Partner struggle with the property taxes, utilities, cell phone bill, groceries and other everyday expenses we just mentioned is to plan on leaving them some income to help pay those bills.

Again, some advisors will tell you that you need 15 years of your gross income. Well, maybe but really, you’re not depositing your gross income now your depositing your NET income into your account every week (or two). If you’re doing ok with that and not struggling, figure how many years of income you want to provide based on your current income. If you are struggling, add the amount that will stop the struggle.

If you are raising a child and doing ok right now financially, just figure when the child is going to be 18 or 21 and plan the income needed to raise the child until 18 or 21.

College Education for Your Child

Yes it is just awesome that when you pass way, you child or children will automatically be guaranteed a fully paid college education. But a college education will add to the death benefit needed. Check out the Cost Estimator for college cost data. On this website you can also search annual cost for specific colleges. If this jacks the death benefit up too high where the premium is too high, you can always consider loans and scholarships.

Again, figure how long your child will be in college and add this to the death benefit needed.

Ok, those are the facts as I see them. So breakout the paper, calculator and pencil with a big eraser and figure what is needed. Don’t let anyone sell you something you don’t need.

Remember……Plan, Protect and Preserve.

Be Great My Friends!!

As always, if you have a question, comment, need help in figuring how much you need in Life Insurance or need a free no hassle Life Insurance Quote feel free to contact us:


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