course, the best life insurance policy is the one that fits best with your situation and family needs. The premium rate that you pay could vary based on the company and a variety of personal factors such as age, health, and the amount of coverage you buy.
How much life insurance do new parents need, and what will it cost? There’s no one-size-fits-all answer to how much life insurance your family needs, especially if your family is growing. Many people want enough cover- age to help take care of all of life’s expenses including home mortgages, college tuition, and everyday living costs. There are many different factors to consider. The goal of purchasing life insurance isn’t just to replace your earnings but protect your loved ones from financial crises. Think of all the significant financial obligations that may be left behind if you died unexpectedly—from your home and business to debts on which you’ve cosigned. A simple rule of thumb is to multiply your salary by 10 to replace lost income. Then, you’ll want to add on any debt you might have, including mortgage payments, estimated education costs, child and general household care, and other daily expenses. You may also want to add extra coverage that would help cover your spouse’s income for a year or two, so that the surviving parent wouldn’t have to worry about returning to work immediately while grieving. If your spouse is a stay-at-home parent, consider adding a rough estimate of what their annual salary would be if they suddenly had to return to work. Learn more about choosing the right type of life insurance plan and how much a life insurance policy will cost to protect your family. You can use this life insurance calculator from Ethos to help get an estimate of how much coverage you need and what your policy could cost.
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