It's relatively straightforward to know how much insurance you might need for certain valuables, like a car or your home. But many people don't know the answer to this question: "How much life insurance do I really need?"
If you find yourself in these shoes, you aren't alone. According to a study by Life Happens and LIMRA, 40% of people haven’t bought life insurance, or more of it, because they are unsure of how much or what type to buy.
Whether you are retired or still working, life insurance can help solve for many issues. For young to middle-aged couples with dependents, it may be a source of financial protection, income replacement, or supplemental liquidity.
And for households of retirement age? Life insurance can let you enjoy tax-advantaged income, pass a legacy to heirs in a tax-efficient manner, mitigate tax burdens upon death, and even provide much-needed liquidity for post-death expenses.
Here are some helpful basics to consider as you research how much life insurance may be right for you.
