3. Determine Your Life Insurance Coverage Needs & Priority!
So, how much money will you really need if one or both parents were to die?
First, you should think about how long the money needs to last. Until the kids are in grade school, high school, college, or forever? Some parents will buy just enough coverage to bridge the gap so that a stay at home or part time parent would not have to work full time until a certain milestone when the children are in school. Others want to make sure the other parent would never have to work again or that their personal salary would be completely replaced.
Second, how much is you and your spouses income? What’s the comfort level that would be expected and how much money would be required to fulfill it?
Third, factor in inflation and unforeseen circumstances. Usually a professional could help with this, but the idea is to think of worst case scenario. Typically the difference in cost to get an extra few hundred thousand dollars in coverage is worth it!
You can Click Here to figure out how much life insurance you may need and also look at cool college education savings/life insurance combo plans.