Here are four steps to help estimate how much life insurance coverage you may need:
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Estimate your immediate and future financial obligations. Consider final expenses, outstanding debts, mortgage payments, childcare costs and future goals such as funding a child’s education.
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Calculate your family’s ongoing needs. Estimate essential household expenses and how many years your family may need financial support. Also consider the value of services you provide, such as childcare or household management.
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Review your available resources. Add up the savings, investments and existing life insurance that could help support your family. You may also want to consider employer-sponsored coverage and any Social Security survivor benefits your family may be eligible to receive.
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Calculate the difference. Subtract your available resources from your estimated financial obligations and ongoing needs. The result can provide a starting point for determining how much life insurance coverage to consider.
Your needs may change over time, so review your coverage after major life events such as getting married, buying a home or welcoming a child.
Visit cluballiance.com/insurance to start a quote or call 833-879-7949 to speak to a licensed AAA Insurance Agent who can help you evaluate your options and choose coverage that fits your needs and budget.