Why you need life insurance

I'm going to save us all some time and skip past the obligatory part where I talk about why you need life insurance. I'll be blunt and to the point: you know why you need life insurance - if you don't have it yet, it's time to get coverage in place to protect your loved ones.

How much life insurance do you need?

I'm going to ask you to do a little bit of math here.  When it comes to getting the right amount of life insurance to protect your family, it's worth taking a few minutes to do this right - I'll walk you through the steps:

STEP 1: If you were completely debt free, how much money would you need per month to maintain your current lifestyle?

Take this number, and multiply it by 12.

Then take that number and divide it by 0.04.

Write this number down - we'll come back to it in a minute.

STEP 2: Add up your total outstanding debts.

This could be your mortgage, credit card debt, student loans, etc.

STEP 3: How much do you still need to save to pay for all your kids' education?

STEP 4: How much liquid assets do you have available (cash, savings, investments, etc)?

Now, take the answers to steps 1, 2 & 3, and add them together, then subtract the answer to step 4.

This is how much life insurance you need.

An example

STEP 1: Sarah is the bread winner in a family that needs $8,000 a month in income to maintain their current lifestyle.

$8,000 x 12 = $96,000

$96,000 ÷ 0.04 = $2,400,000

STEP 2: Sarah and her husband Ryan have a mortgage and some student loans that combine to a total outstanding debt of about $300,000.

STEP 3: Sarah & Ryan have two kids and need to save an additional $200,000 to pay for their education.

STEP 4: Sarah & Ryan have about $300,000 in liquid or near liquid assets.

$2,400,000 + $300,000 + $200,000 - $300,000 = $2,600,000

Therefore, Sarah needs about $2,600,000 in Life Insurance right now.

We make buying life insurance easy

We have a digital application process through which you'll answer some basic questions, schedule your exam, connect to any app or portal you use with your doctor (optional, but recommended), and e-sign the application.

The whole process usually takes less than 10 minutes.

The advantage of this is speed and convenience. You get your life insurance application started, eliminate a lot of the back and forth that takes time, and avoid the need to meet in person.

How to get started

*If you decide to get started yourself, please remember that Life Insurance is subject to medical underwriting.  If you have prior or current health conditions, or if you take any medications, we recommend that you give us a call - there can be unintended consequences if you apply for coverage with the wrong company. 

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