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  • Writer's pictureRoland Abbott & DeZoort

How Much Life Insurance Do I Need?

Meet the Smiths

Let’s say a couple in their 40s has two kids; one spouse makes $100k per year while the other stays at home with the kids. Let’s say this family (we’ll call them the Smiths) have two cars with average car payments, a reasonable mortgage on their house, send both kids to private school, carry a normal amount of credit card debt, and contribute 15% of their household income to retirement. Everything considered, the Smiths are the average American family.

The Smiths have a $1 million term life insurance policy on the employed spouse. If something were to happen to the employed spouse, the $1 million policy would only replace the Smith's $100k/year income for the next 10 years. But wait! If the Smiths paid off all of their debt, the surviving spouse would likely be down to only 5-7 years of replacement income from the remainder of the policy.

Why does this matter?

Just like most Americans, the Smiths probably thought that a million-dollar policy would set them up for the rest of their life if something were to happen. This is why it is extremely important to understand how much life insurance is right for your situation so that your family will be adequately protected. Knowing the numbers matters.

How much do I need?

Our team works with families just like the Smiths every day. We help them think through how much money they would need if something were to happen to the primary income earner and find a policy that is right for them.

How do we do this?

As an independent insurance agency, we are not locked into one insurance company. Instead, our team takes the time to understand your unique situation and shop it with multiple insurance carriers. This means that our clients get the best coverage at the right price.


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