How do you calculate the amount of life insurance coverage you may need?
If you buy more coverage than you need, you could potentially pay premiums that are higher than you anticipated. If you buy too little coverage you may not be able to sufficiently help cover your debts and other expenses your dependents may incur in the event of your death.
A life insurance calculator can help you assess your personal life insurance needs. By carefully considering your finances, you can use a life insurance calculator to help you arrive at a coverage amount that can fit your unique financial situation.
At AIG Life Insurers, our easy-to-use life insurance calculator can help you figure out how much life insurance coverage you may need.
Simply enter the appropriate numbers within the input fields for consideration such as your home equity, income and college fund amounts. The calculator accounts for a number of factors, including your current life insurance coverage, assets and your expected expenses and debts at death.
The calculator doesn’t just provide you with an amount of life insurance coverage you might want to consider, it also provides detailed clarity into your finances, how you arrived at such a coverage amount and how your life insurance policy would be used to help protect your beneficiaries. Under the calculator, you’ll find a thorough explanation of each number you’re asked to enter.
When determining how much life insurance to buy, you’ll sometimes hear general rules of thumb such as using 10 times your income, or the DIME (Debt, Income, Mortgage, Education) formula.
But the financial future of your loved ones is too important to leave in the hands of a general rule of thumb. Using a life insurance calculator can help give you an opportunity to acquire a more accurate coverage amount that might better serve the needs of your beneficiaries.
A calculator can be useful for determining how much life insurance coverage you may need, and a few tips can also help you perform additional calculations.
Get help determining your life insurance needs today by using our life insurance calculator, and don’t hesitate to call 1-888-428-8870 to speak to an AIG-appointed life insurance agent who can help you select the policy and coverage amount that fit your needs.