Life Insurance: How Much is Enough?
by Heather Mosher

Life Insurance: How Much is Enough?

One of the biggest hurdles to helping people put a life insurance plan into place is the uncertainty around how much to purchase.  There is often a lot of anxiety around the idea that the person may be under or over-shooting their needs.  This then become one of the most crucial parts of the conversation when speaking to new clients about their life insurance needs.  It would be easy to say that there is a magic formula which allows us to give each person an EXACT amount of coverage if that time ever arises.  The fact is, there is not this magic formula so in many cases, it comes down to educated guess work and having a good discussion about future goals, expectations and life choices.


Don’t get me wrong, there are MANY websites which offer really good advice about how best to calculate your “number.”  These needs analysis are often used to point someone in the right direction.  As a starting point, you might want to keep it simple and look at a 40,000 foot view of your future.

Here are 5 simple items to consider when determining your life insurance valuation:

Final expenses

Outstanding debt (including mortgage value)

College funding (per child)

Current savings and investments

Monthly expenses

While this will give you a starting direction, there are far more complicated and all-encompassing needs analysis calculators out there.  This is especially important when you are contemplating estate planning needs or future gifting and donating.

If you are having the discussion around life insurance,  you are ahead of 40% of your fellow American households.  The reality is that when most people look at the numbers, it can be overwhelming so they do nothing.  That is not the right action to take.  The fact that you would consider making this purchase to secure your family’s saftey and future – regardless of the amount of coverage that fits into your budget – is the most important thing.

For a full life insurance review and analysis, call your insurance or financial advisor.  This is one of the most important things you can do to show your loved ones you care.

Remember, September is Life Insurance Awareness Month.  Visit for helpful information.

To learn more about Life Insurance contact Heather Mosher | 906.315.7235 |


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