• You can use any number of planning tools to get an idea of the amount of coverage you'll need for your policy. The easiest way is to simply use an acronym called “D.I.M.E.” Debt, Mortgage, Income x 10, Expenses”. Add these figures up and you will come up with what is most commonly known as your “Insurable Need”.
• Another way: Multiply your annual income by the number of years left before your retirement benefits kick in.
• You can also add up the expenses you think your family will incur after your death, such as a mortgage, school bills, and car costs. Then take your ongoing yearly expenses and divide them by 0.07. That translates to you needing a lump sum of money earning approximately 7% each year to pay those ongoing expenses. Add to that amount the money you'll need to cover one-time expenses at death, and you'll have a rough estimate of the amount of life insurance you need.

And of course, you can also use our Champion Professionals to help you determine how much protection you will ultimately may need.

• As useful as calculators and rough estimates are, they cannot provide you with final answers. Calculators only allow you to perform "hypotheticals," recalculating and generating new results as you make and input new assumptions. 

  Using tools, and educating yourself on the workings of life insurance and other financial products can be beneficial, however, having direct insight and guidance can equip you to feel more comfortable when discussing your needs with a Champion Brokerage Licensed Professional.