Every life insurance agent has a formula to coldly calculate how much life insurance you have to buy.
These are useful tools, and I encourage everyone who has dependents to buy life insurance. But I've seen too many people buy too much insurance.
How much is too much? It's simple:
If you can't afford the premiums five years down the road, you have too much life insurance.
Here's what I mean: while you're planning responsibly to provide for your family should you die prematurely, please start first with what you can afford to spend.
So, if your budget is $700 - than buy whatever $700 gets you. Don't talk yourself into a $2,000 annual plan just because it makes you feel good now but you have to cancel later for non-payment when you have to make household budget cuts.
As your means to buy insurance increases, you can add more of this important family income protection.
To find out how much life insurance you can get for whatever your budget, give us a call.