When you’re looking to buy life insurance, the hardest thing to decide is how much insurance you should get.

Most experts suggest that you should cover at least 5 to 10 times your annual salary. However, you should determine more accurately based on a “needs analysis”. With this method you can calculate more precisely how much your family would need to maintain their standard of living when you’re gone.

Some things to consider would be mortgage debt, paying for college expenses and being able to provide future family income.

Mortgage Debt

The first thing to consider is whether your life insurance proceeds will be sufficient to help pay the remaining mortgage on your home. If you are carrying a large mortgage, you may need a sizable amount. If you own a second home, that mortgage should also be factored into the formula.

College Expenses

Most people want to help cover their children’s college expenses. The amount needed can be estimated by matching the ages of your children against projected college costs adjusted for inflation. This calculation should be revised periodically as your children get closer to college age, and it may be a good idea to be as conservative as possible when estimating long-term financial goals.

Continuing Income for Your Family

The amount of income you will need to help provide for your surviving spouse and family can vary drastically. Although your spouse may be employed, their income alone may not be sufficient enough to cover the monthly expenses of your family’s current lifestyle. Providing a supplemental income fund can help your family maintain their standard of living.

Contact an INSURUS agent today to insure your family.