How much life insurance do I need? – CBS News

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By matt richardson
/ CBS News
Life insurance, like most other forms of insurance, is something you hopefully won’t have to deal with very often. Once set up properly, it should just be another bill you pay for security and peace of mind. But the importance of having it – and having the right amount – cannot be understated. 
Like other insurance types, the terms, conditions and applicable circumstances vary. The proper amount each individual needs depends on their own personal financial situation.
If you don’t have life insurance – or want to get more – now is a good time to act. Don’t hesitate and get a free estimate today.
How much life insurance you need is specific to your own individual circumstances and standard of living. There are a series of questions you will need to answer to help drill down to a specific number:
If you don’t have life insurance or are unsure if you have the right amount, act today. You can get the latest information on providers, review local companies and compare rates now.
To help better determine how much life insurance you need, it’s helpful to understand what life insurance actually is and why it may be necessary for both you and your family. 
Simply put: life insurance is insurance that covers you, the individual, in the event of your death. Similar to how car insurance covers your vehicle if there’s been an accident and home insurance covers damage or repairs to your dwelling, life insurance covers you monetarily after you have died. In exchange for payments made directly to an insurance company or through other means (like an employer), an insurance company will pay your beneficiaries an agreed-upon lump sum in the event of your death. 
You don’t necessarily need to die to get paid, however. Depending on the terms and conditions of the insurance plan you have, other instances (like terminal or severe sickness) could also trigger a payout.
There are two primary types: term life insurance (a pre-determined set amount of time in which you’ll be insured) and whole life insurance (which remains active for a full lifetime).
You need life insurance for the same reason you need all other forms of traditional insurance: to protect you and your family when unfortunate events arise. The financial impact a loved one’s death can cause would be significantly reduced if the person had life insurance and was covered for an appropriate amount.
In short: There is no set amount of life insurance everyone should have. It depends on a variety of factors (including how much you’re willing to pay in premiums each month). 
Not sure how much life insurance you really need? An online financial adviser can help determine the right amount to cover you and your family. 
First published on August 17, 2022 / 9:03 AM
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