When it comes to financial planning, managing risk is critical. This is especially true for young, growing families. Life insurance is a cornerstone of financial security, providing peace of mind that your loved ones will be cared for if the unexpected happens.

So, how much life insurance do you need?
Here are four key areas to consider:

1. Income Replacement: Aim to replace 60% of your annual income multiplied by the number of years your dependents will rely on you.
2. Education Costs: Factor in future college tuition for your children. The average is $10,000–$20,000 per year per child, often for four years. And don’t forget—tuition costs typically outpace inflation!
3. Mortgage and Debt: Ensure your coverage can clear your mortgage and other debts, so your family doesn’t bear that financial burden.
4. Funeral Expenses: A general estimate for burial and funeral costs is around $20,000.

Example: John Smith’s Life Insurance Need
John earns $100,000 annually and has two children aged 8 and 5. He also has a $150,000 mortgage balance. Here’s a simplified calculation:

1. Income Replacement: $100,000 x 60% x 13 years = $780,000
2. College Tuition: $15,000 x 4 years x 2 children = $120,000
3. Mortgage and Debt: $150,000
4. Funeral Expenses: $20,000
   Total Coverage Needed: $1,070,000

While this number may seem high, consider the alternative—your loved ones would have to manage this financial gap on their own. Taking action now ensures their standard of living is protected.

Why Start Early?

The best time to secure life insurance is when you’re young and healthy. Lower premiums mean you can lock in affordable coverage that fits seamlessly into your financial plan.

Ready to take the first step? Get started today.