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Determining How Much Life Insurance Coverage You Need

determining-how-much-life-insurance-coverage-you-need

There’s no shortage of Insurance Services in Homestead, Florida, in the market today.

Although everyone should include Life Insurance in Miami, Florida, in their financial strategy, not everyone has the same insurance needs. The amount of life insurance you need depends on personal factors, including your financial condition, family responsibilities, and top priorities.

Some universal life insurance policies offer flexible premiums that may allow you to adjust how much you’ll pay each year by accessing some of the policy’s cash value.

While you can’t see into the future or predict every price your loved ones could incur in your absence, the DIME formula is an easy technique to get a ballpark estimate.

DIME stands for Debt, Income, Mortgage, and Education. These are four things to consider when estimating your life insurance needs.

First, total all your debts, excluding your mortgage, and add a couple of thousand dollars for final expenses. Next, know how much income you make annually and multiply that by how many years until your family needs that money.

Additionally, look at your latest statement and determine the payoff amount of your mortgage. If you have a second mortgage or HELOC (Home Equity Line of Credit), add that (if you haven’t already included it in the debt section above). Also, if you have a child, expect college education costs for each of them.

Lastly, add up all those four factors, and that’s your number. If you have any current life savings or insurance already, you can deduct those here.

Getting insured should not be a hassle. Let J.E. Insurance Associates DBA Amco Insurance help determine your insurance coverage needs.

We also offer Obama Care in Homestead, Florida so contact us anytime to learn more.

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