How Much Life Insurance Do I Really Need?
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Whether you’re looking to buy life insurance for the first time or thinking about adding a bit more protection, knowing just “how much” you need can be challenging. Everyone’s specific situation, family, health and lifestyle is different.
The absolute best way to figure out the exact amount needed is to talk with an Insurance Professional. In the meantime, though, you can get a helpful “baseline” by taking a look at someone in a similar life stage. The following coverage snapshots are for illustrative purposes only.
Homeowners with a mortgage
Juggling competing priorities of day-to-day expenses with an eye to longer-term financial goals and needs.
Salary: $50-100k
Age: 25-40
Married: Yes
Dependents: 1
Suggested coverage: $1M-$1.25M
Suggested term: 15-30 years
Types of things to cover:
✓ Loss of income
✓ 30 year mortgage
✓ Childcare expenses
✓ Funeral expenses
Young family
Everyone tells new parents “they grow up so fast.” That’s actually code for “it’s never too soon to start planning.”
Salary: $35-75k
Age: 25-34
Married: Yes
Dependents: 1
Suggested coverage: $750k-$1M
Suggested term: 25-30 years
Types of things to cover:
✓ Loss of income
✓ Childcare expenses
✓ Child's college tuition
✓ Funeral expenses
Head of household planning ahead
Before you know it, you’ll be “empty nesters.” This might be a good time to focus on your nest egg.
Salary: $75-150k
Age: 34-54
Married: Yes
Dependents: 2
Suggested coverage: $1.5-$2M
Suggested term: 10-25 years
Types of things to cover:
✓ Loss of income
✓ Mortgage
✓ 2x college tuition
✓ Retirement distribution
Parents balancing caring for their children and their parents
Caring for your dependents can be stressful. Remember, you’re not alone.
Salary: $75-125k
Age: 40-55
Married: Yes
Dependents: 2 children, 1 live-in aging parent
Suggested coverage: $1.25-$2M
Suggested term: 15-20 yr
Types of things to cover:
✓ Loss of income
✓ Mortgage
✓ College tuition
✓ In-home elder care
Ready to find out how much life insurance coverage you need?
Now that you’ve seen how your peers are protecting their family’s future, maybe you’d like to know how much coverage you and your family may need. Calculate your coverage now.
Financial planning and investment advice provided by John Hancock Personal Financial Services, LLC (“JHPFS”), an SEC registered investment adviser. Investments: not FDIC insured – No Bank Guarantee – May Lose Value. Investing involves risk, including loss of principal, and past performance does not guarantee future results. Diversified portfolios and asset allocation do not guarantee profit or protect against loss. Nothing on this site should be construed to be an offer, solicitation of an offer, or recommendation to buy or sell any security. Before investing, consider your investment objectives and JHPFS’s fees. JHPFS does not provide legal or tax advice and investors should consult with their personal legal and tax advisors prior to purchasing a financial plan or making any investment.
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