Even if you have life insurance through your employer, your coverage may not be enough for your needs, may not be available after you retire or may only pay out in certain situations, such as accidental deaths. An easy way to calculate how much life insurance you need is by using this formula:
L is for Loans.
Make sure your life insurance policy pays out enough to cover the balance of any outstanding loans, including your mortgage.
I is for Income Replacement.
Most experts recommend a policy that covers 5-10x your annual salary.
F is for Final Expenses.
You’ll want to be able to cover funeral expenses, outstanding medical bills, taxes and court expenses related to probating your will. These costs average around $20,000, but your needs may differ.
E is for Education.
If you have children, experts recommend budgeting $100,000 per child to pay for college and other educational expenses.
Everyone’s situation is different. All of this is just intended to get the conversation started. A licensed Mylo advisor can help you find the right life insurance for you and your loved ones.