When shopping for life insurance in VA, one of the most common questions is “How much do I need?” There are a number of variables that go into the answer, as one size doesn’t fit all. There are two general types of situations that determine how much life insurance you need.
The first situation is where you want the insurance for a specific need. You want to pay your debts, your final expenses, and any other costs you want taken care of. Add all these things up and you have the amount of life insurance that you should buy. If you are single without a spouse or children, this is probably your situation.
If you have a family, your life insurance needs are different. If you want to provide an income for them after you are gone, you will need to add enough money so that they can have an investment portfolio. First, start with your current debts. Then you need to add the amount that you want to invest. To have a $40,000 annual income, you probably need around one million with a return of four percent.
Working with an insurance specialist, you can find the right amount of life insurance in VA that meets the needs of your family. As your family changes, you can adjust your insurance needs as you pay off debts or take on more responsibilities.