How much Life Insurance should an Individual Own in Laurel, Maryland?

No one ever likes to think about what their family’s life will be like once they pass on, but the reality is that eventually everyone will leave their current life–some sooner than others. One way in which you can prepare to make life easier on your loved ones is to have plenty of life insurance so that your family’s financial needs are taken care of during their grieving process. Every adult should have their own insurance policy if they have people who depend on them such as parents of minor children, grandparents who are raising grandkids or individuals who have disabled adult children for whom they are caregivers. Insurance money is meant to cover your loss of income should you pass away while you still have people to care for. To decide how much insurance you need, simply multiply your own annual income by at least ten times. If you earn $50,000 a year, then you should have–at minimum–a $500,000 life insurance policy. This way your family will have plenty of money to use and invest so that they can maintain their current standard of living. Some experts even recommend getting as much as 20 times your annual income, or in this case a $1 million policy. Since the cost of living in Laurel, Maryland is a bit higher than other places in the United States, aiming for 15 times is a good option. It’s important for both parents to have their own policies, even if one is a stay at home parent. The economic value that a stay at home parent provides is significant, so it’s wise to purchase at least $500,000 in life insurance for them. To get more information about which type of life insurance policy is right for you, contact your independent agent in Laurel. We can work with you to help you decide the amount of life insurance that is right for your needs.