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Things to think about when deciding how much life insurance to buy
How much life insurance do I need is a simple question, with a not-so- simple answer. Why? Because there is no one size fits all answer. Different people, different lifestyles, different needs - each and every one is a unique case with its own unique answer.
The amount of life insurance for a single person with a house that is paid off and no dependants may be completely different from someone with car payments, a mortgage and a house full of children all with plans to go to university.
A first step you can take to find out how much coverage you need is to determine how much money your loved ones would need if you were to pass away.
Here is a list of some examples of things to consider when thinking about how much life insurance you need:
- lost income
- outstanding loans and debts
- your children’s future education costs
- mortgage payments
- car payments
- your family’s lifestyle
Here are two very different scenarios as examples to show what kind of coverage different people with different obligations may need:
Scenario 1
Astra and Dominique are in their late twenties and just got married. They just bought a house together and plan to start a family soon.
TD 20-Year Term Life would be a good product for Astra and Dominique because of their mortgage they can predict the type of debt they will carry in the next twenty years.
Scenario 2
Mohammed just turned sixty. His two children have left home and are starting their own families. He has five years left on his mortgage and he is hoping to retire once it’s paid off.
TD 10-Year Term Life may be a good product for Mohammed because he has shorter term financial responsibilities.
Looking for more help?
Everyone has different circumstances in their life they want to prepare for. We have created an online tool to help you calculate how much life insurance you may need for you and your family. The TD Life Insurance Calculator is available to help you. Just answer a few questions and then you can review your personalized life insurance options.
Also, you can call 1-888-756-5666 and a TD Life Insurance licensed advisor will be happy to help you.
The information presented in this article is for general information purposes only, and does not constitute, nor should it be relied upon as financial or other advice.