How Much Life Insurance Do I Need?

Having a life insurance policy in Coppell, TX not only secures the future of your loved ones, but it also gives you peace of mind. If you’re considering purchasing a life insurance policy, you may be wondering how much you need. The team at The Select Insurance Agency has put together this short guide to help you get started.

Calculating how much life insurance you need is simple. Here are two ways to do it.

Calculate to Reveal a Gap

You take your long-term financial obligations, such as mortgage and debt, and then subtract your assets. What is left is the gap that a life insurance policy would fill and this is the minimum amount you would want to purchase. To do this, add your salary to the number of years you want to replace that income. Is 10 years enough? Maybe fifteen? Add these to your mortgage balance, debt, and future costs such as burial expenses and tuition. If you’re a stay-at-home parent, be sure to include what it would cost to replace you and add this amount. From the total, subtract your liquid assets; cash, savings, 401K, and any other liquid assets you may have, including current life insurance policies. The remaining number determines the amount of coverage you need.  

Use the 10 times Value 

The 10 times value is a general rule of thumb to follow when trying to determine how much life insurance you need. This rule states that you need 10 times your current salary in life insurance benefits. For example, if you make $50,000 per year, you’ll need $500,00 in life insurance. However, keep in mind inflation and fluctuating interest rates that could mean you need more. If you have dependents, take on another $100,00 for each child. 

To learn more about obtaining a life insurance policy, contact the team at The Select Insurance Agency, serving the Coppell, TX area. 

Who should get umbrella insurance in Texas?

When you are in the Coppell, TX area, you are bound to have a variety of different personal insurance needs. When you are looking to build a new personal insurance plan, one type of insurance to consider getting is umbrella insurance, which will provide you with additional personal liability insurance coverage. There are several situations when someone should invest in an umbrella insurance policy. 

Those that Want Additional Coverage

One situation when getting umbrella insurance is a good idea is when you want additional coverage. Those that have home or auto policies will have some coverage in place already. However, the liability coverage received is limited to the policy level. If there is ever a very bad accident, your damages could exceed that level. Fortunately, when you have an umbrella insurance coverage policy, you will have the additional protection needed on top of the base policies.

Peace of Mind

You should also want to get an umbrella insurance policy if you would like a peace of mind. It can be very hard to build insurance policies that will offset all of your liability risks. Fortunately, if you do get an umbrella insurance policy, you can receive coverage for a very vast set of risks that could result in a liability claim. This could provide you with protection and peace of mind. 

There are a lot of situations when getting umbrella insurance in the Coppell, TX area is a good idea. Since this can be a complex type of insurance to pick, you should call the team at The Select Insurance Agency. When you call The Select Insurance Agency, you are going to learn a lot more about umbrella insurance. They can then evaluate your personal situation and help you determine if this insurance coverage is right for you.