• How Much Life Insurance Do I Need?

  • When you buy a life insurance policy, it’s important to get the right amount of coverage. Too little and you could leave your loved ones in a tough financial spot. Too much and you’ll be paying for coverage you don’t need. Here’s an overview of things to think about when you’re calculating your needs.

    Income Replacement

    Is anyone besides you relying on your income right now for living expenses? Perhaps your spouse or your children? If you died tomorrow, they no longer have your paycheck. That’s why the first item you consider is income replacement. One easy method is to determine how much money your loved ones need each year and multiply that by the number of years they need it. For example, this could be the total years until your children become adults.

    Debts and Obligations

    If you have any outstanding debts, you likely want your life insurance to cover these expenses as well so they don’t fall on your loved ones. Consider the remaining balance on your mortgage, credit card debt and any other types of debt. You may also want to add some extra money for this category to cover the cost of your funeral and other final expenses.

    Total Available Funds

    What do you already have saved? You may already have some of your needs covered. In which case, you can subtract that amount from your life insurance needs. If you have any income other than your salary – dividends from stock as an example – you can also count those as you look to offset future obligations. And remember to include the face amount of any life insurance policies that you already own or have through your employer since these may pay out at your death.

    Now that you’ve outlined the basics, you have a solid starting point. There might be other items to consider. Talk over your calculations with your family – and perhaps even an investment advisor – to make sure you haven’t overlooked anything. Then you’re ready to select a policy that’s right for you.

    Want to quickly determine how much you might need? Check out our needs analysis calculator to get started.

  • Connect With Us
  • Need Coverage?

    Select Your State: 

    Or call 1-844-733-5433

  • Fast Fact

    One third of consumers believe they don’t have enough life insurance.

    Source: LIMRA 2013 Insurance Barometer Study

  • Understanding Life Insurance.
    At Protective, we believe choosing and buying life insurance should be simple. Our goal is to provide the information and understanding you need to make the right life insurance choices for your needs. From explaining the differences between universal, whole and term life insurance to helping you understand how much life insurance you might need, we hope you’ll find everything you need to make smart decisions about life insurance protection.

    Do I Have Enough Life Insurance Coverage?

    Statistics tell us that 33% of Americans believe they need more life insurance. But how do you know if you have enough coverage or too much coverage? We recommend you review your coverage regularly and especially when you have major life events like marriage, children or a home purchase.  Many people find that they need more coverage when they are in the prime of their career and they have children at home or in college, but as they get older, the amount of coverage they need decreases.  Your needs may change based on a variety of factors. Our Life Insurance needs calculator or a financial advisor can help with this process.        
    Creating your Plan.
    Whether you use our online quoting tool or you prefer going to an agent, we can help you understand your life insurance needs. Our goal is to de-mystify the life insurance process and help you feel confident that you have the right coverage. To find a licensed Protective Life agent or get a free life insurance quote, call 1-844-733-5433, Monday through Friday, 8 a.m. to 10 p.m. EST and Saturday 10 a.m. to 2 p.m. EST, or get your free quote online now.