How much life insurance Do I need?
This is a basic question that we hear when speaking with clients. Life insurance needs change from year to year and knowing the right amount to protect your family or loved ones can be a little overwhelming.
How do I want to be buried?
How many years of my annual income do I leave behind?
How much do I owe for all outstanding debt?
Do I want to cover any educational expenses for my loved ones?
There is a simple formula that the industry uses to figure how much you should get, and it’s not 10 or 15 times your salary.
Take the word LIFE and break it down by each letter:
L=Liabilities
I=Income Replacement
F=Final Expenses
E=Educational Expenses
Once you have identified this number, we find a contract with an insurance company to cover that number.
The next thing to do is determine which type of contract will best protect your situation, but that is a discussion for another blog.
For now, figure out your number and give me a call if it looks like you might need to increase it. We can talk about options to solve your situation.
Chris Leitch was born in Fredericksburg, VA and moved to Chesterfield in 1985. After graduating from Manchester High School in 1987, Chris was given a full scholarship to Virginia Commonwealth University where he majored in Music Education.
While at VCU he started playing keyboards and trombone in local and regional bands like Fighting Gravity and Groove Spot.
Chris met his wife, Michelle Duffie while in High School and maintained 'friendship status' until they were married in 1993, and after 27 years they are still married and have 2 children and 1 dog. Chris's insurance career started in 1993 in the operations department at the Dalkon Shield Claimants Trust.
Next he worked as a file clerk and claims adjuster at Sentry Insurance, but his passion was for sales because he saw it as a good way to help people sort out complicated insurance matters. Chris has a philosophy that he tries to practice daily, 'Give someone more in use value than you take from them in cash value'. Here at The Springer Agency, we try to do that with everyone we meet.
