Choosing the Amount of Life Insurance
Your need for life insurance will vary with your age and
responsibilities. The amount of insurance you buy should
depend on the standard of living you wish to assure for your
dependents. You should consider the amount of assets and
sources of continuing income available to your dependents
when you pass away. Simply stated, you should choose
an amount of life insurance that is determined necessary
to meet the needs you are trying to satisfy. A balance
needs to be achieved in this process. To be over-insured
can negatively affect your budget and threaten your long
range financial goals just as much as being under-insured
can. While each person must individually assess their
responsibilities, needs, and financial situation, it is important
to be careful to choose an amount of life insurance that
reflects your specific circumstances without under-insuring
or over-insuring.