If you haven't reviewed your insurance profile in a while, you may be surprised that what made sense in the past no longer fits your life.
Here are some ways to quickly evaluate your needs.
1. Stop on a DIME - To use the DIME method, add up your debt, ten years of Income, your Mortgage payoff amount, and the cost of your children's college
Education. This can provide a starting point for how much insurance coverage you may require.
2. Look at Your Options - Do you need term life insurance (coverage for a fixed amount of time) or whole life insurance (a policy structured to last until you pass away)?
3. Evaluate Costs - The price of a policy depends on your age, health, and the amount of coverage in the policy.
These methods can help give you a rough idea of where to start. But there's no substitute for speaking with a financial professional, insurance agent, and estate planning specialist about the right approach for you.
After all, life doesn't stand still, and neither should your life insurance policy. Several factors will affect the cost and availability of life insurance, including age, health and the type or amount of insurance purchased. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.