How To Figure Out How Much Life Insurance You Really Need

I need to be frank with you guys.

Please don't hate me for speaking the truth, and take a deep breath before reading any further.

Being a mom and not having life insurance is dumb. Your husband/wife/partner not having life insurance is dumb. It's beyond dumb, it's downright stupid. You love your kids, and you love the person you sleep with (besides your children), so you need to do the responsible thing and provide for them in the event that you no longer can.

How much should you be insured for in the event of an untimely death? You need to factor in many things, which you need to spend a bit of time figuring out. All you need to do is find an independent insurance broker and get everything squared away. Show your kids how smart you are, and save them from having to struggle financially if you head on up to the spirit in the sky.

Middle-income Canadians are under-insured, while 65% of Canadians have no coverage or inadequate life insurance coverage. (I'm in the 35%, which means I really want more Canadians to get their act together.) Empire Life has the funniest video to show how dumb it is to die without life insurance.

See it here:

Empire Life rates for term insurance are very competitive — sometimes much lower than mortgage insurance offered by the banks. And they're hilarious. THEY WIN.

There may be many dumb ways to die, but life insurance can give you peace of mind. I like peace of mind. It lets you enjoy the fun ways to live. Life insurance also protects you and your family from the what if?, so you can go on enjoying the why not?

The biggest question most people have is: How much insurance do I really need?

An even more important question is: How much money will your family need after you are gone?

How much money will your family need to meet immediate expenses? Here are a few expenses they will need to deal with:

• Funeral expenses
• Legal fees
• Outstanding debts and mortgage balances

How much money will your family need to maintain their standard of living over several years? A few expenses to consider:

• Everyday living expenses
• Money for a child’s post secondary education
• Your spouse’s retirement

The key is to determine what your immediate costs will be, and then add the standard of living costs. Determine what money is already available to work with (savings, other income), and the difference will be the amount of coverage your insurance policy needs to be.

People often think that life insurance costs too much and that is just not true. Buying life insurance is easy and affordable and SMART. You are a smart Mom/Dad/Human being. Take the time to take care of your family in the event of something going sideways. You know you need to.

Do you have life insurance? Why or why not? I would especially love to hear if you don't, because I want to help you make it right.