How Much Life Insurance Do I Need?
Start from what the money has to do.
There is no single right number. A useful answer comes from adding up what your family or business would need to carry on, and subtracting what is already in place.
New York licensed agent and broker
- Debts to clear
- Mortgage, loans and any personal guarantees on business debt.
- Income to replace
- The yearly income your household relies on, multiplied by the number of years it would be needed.
- Future costs
- Education, childcare and care for a family member with ongoing needs.
- Final expenses
- Funeral costs, taxes and settling the estate.
- Savings and investments
- Assets your family could draw on without hardship.
- Existing coverage
- Individual policies you already own.
- Employer group coverage
- Count it with care. It usually ends if you leave the job and may not follow you.
Once you have a range, we price several amounts and lengths side by side so you can see what each extra year or extra dollar of coverage costs. That is usually where the right answer becomes clear.
Is there a rule of thumb?
Some rules multiply income by a fixed number, but they ignore debts, savings and dependents. We prefer to build the number from your own situation.
Should a stay-at-home parent have coverage?
Often yes. The cost of replacing childcare and household work can be significant even when there is no paid income to replace.
We work in your best interest. At or before the time of application we will tell you whether we are acting as your broker or as the insurer's agent, and whether we receive compensation from the insurer. You can ask for details of our compensation at any time (New York Regulation 194).
Talk to us
Call 646 821 3520 or send a note. We will reply from our Madison Avenue office.