How Much Life Insurance Do I Need to Buy?

So you know you need life insurance for yourself. You want to make sure your beneficiaries – usually your loved ones like your spouse or your children – are taken care of if you were to pass away. You also need to make sure that funeral and burial expenses are covered for you if you were to die suddenly. You don’t want to have other people on the hook for those expenses.

If you are buying life insurance, you may be unsure of how much you need. Well, there is no need to fret over it when it comes to med life insurance. Here are some tips to help you determine how much life insurance you might need:

Use this formula

One tried-and-true method of figuring out how much life insurance you should buy is this: multiply your average annual income by seven to ten, and buy life insurance in that amount. For example, if you make $50,000 a year, you could buy a life insurance policy covering between $350,000 and $500,000. If you bought a life insurance policy in that amount, it could potentially help your beneficiaries survive financially.

However, this formula is not a one-size-fits all. For example, if you are a new doctor and you currently make $50,000 a year as an intern, but you expect to make hundreds of thousands a year more over  what you make now, that $500,000 policy won’t cover very much if you end up making a million a year as a specialist.
Or the reverse could be true. Perhaps you make a lot of money now, but you won’t be making that sort of income 10 years from now, because you will be retired. Maybe you need to get a smaller life insurance policy, one that will cost you less in the pocketbook now.

Figure out how much life insurance you need

You can also figure out how much coverage would work for your beneficiaries when it comes to life insurance by doing this. Take a look at what your debts are, and what your assets are. Also think about things like future expenses such as college tuition for your children. In addition, take into account how much it would cost to hold your funeral and to cremate or bury you.

Another way to find information about how much life insurance you might need is to check with Med Life. Click here for more information from Med Life. If you have any other questions, simply contact Med Life to learn more.