If you want to protect your loved ones in the event of your unexpected passing, a great way to do so is with a life insurance policy. Once you realize that you need this coverage, though, it can be a momentous task to try to determine exactly how much coverage you should purchase. Instead of agonizing over this issue, call your insurance agent! They will help you determine the right amount of coverage for your needs, including the following considerations:

Make sure that you leave enough behind to support those people that depend on you financially. Your life insurance policy should leave enough support for spouses and/or parents that you support, as well as enough to support children until they are able to be financially independent.

If you currently have any outstanding debt, you should probably have enough life insurance to clear it in the event of your death. A life insurance professional can help you determine which debts you should cover, but generally speaking you want to consider covering credit card debt, student loans, car loans, and mortgages.

Let’s face it – death is expensive. Make sure that you include some money in your life insurance to cover your final expenses for a funeral and burial, which could exceed $10,000. This should also include an earmarked amount to cover any estate taxes that will be incurred upon your passing.

You will also need to include any future obligations in your whole or term life insurance policy. If you want to cover your child’s college education, or want your spouse to be able to take a vacation after you pass away, this should be accounted for when determining your life insurance policy’s payout value.

In addition to being covered for all of the above, you should make sure to call and speak with your Massachusetts insurance agent if your financial situation changes, because it could affect the amount of life insurance coverage that you need. Specifically, the following situations typically require a life insurance coverage adjustment:

A change in marital status – either a marriage or a divorce will change your life insurance needs.

The birth of a child – you should probably increase your life insurance policy to cover the child until their 18th birthday, and adjust this coverage down every couple of years until they are grown.

You take on debt – as we mentioned, your life insurance should cover your debts, so let your agent know if you buy a home or a car. You may also want to increase your coverage if your credit card debt increases. Conversely, if you pay off a significant debt, you can decrease your coverage proportionally.

Retirement – the majority of life insurance coverage is meant to replace your income if you pass away. When you retire (and therefore no longer have an income) you no longer need this coverage, and your policy should be adjusted accordingly. Make sure, though, that you still have coverage for death expenses and debts.

If you’re ready to talk to one of the best insurance agents in Massachusetts, just call Vargas and Vargas Insurance Agency at 617-298-0655. We will be able to evaluate your financial situation and get you the perfect life insurance quote for your needs.