If you have decided that it is time to buy life insurance, deciding how much is enough can be hard. There are many things that can affect how much coverage you would need. For example, if you are the sole or primary income source, you need to consider some portion of your insurance as income replacement. Consider how much of your income goes toward living expenses and household bills, and how much your spouse would need for any additional costs that arise due to your death, such as child care.
You should consider your current debt, and make sure that your policy is enough to cover that debt and your burial expenses. The key is to buy enough coverage that your family can settle your outstanding bills and afford the expenses of daily life as they move through the mourning process and adjust to the new family dynamic and the lost income source. If you want to have a trust established for your children, consider that amount in your calculations as well.
For more information about permanent life insurance and term life insurance policies in Illinois, please contact the Steve Wilk Insurance Agency Inc.