© 2018 - 2019 by Life Insurance 420 

www.lifeinsurance420.com is a Life Insurance Brokerage, and provides life insurance quotes and general information about applying for life insurance.  Our agents assist in the application process to receive coverage.  Life & Health Agent License for Zachary Taylor Agent #0M60573.  

Contact Us: 213.784.1481 | zack@lifeinsurance420.com

3460 Torrance Blvd. Suite 300

Torrance, CA 90503

HOW MUCH

Life Insurance Do I Need?

When you're considering applying for life insurance, many wonder - how much life insurance do i need?  While there are no hard rules about how much coverage you need, no coverage is certainly not enough, and we like to start with a practical approach.  Some typical things you should consider in the amount include:

  • Total Debt

    • Mortgage Balance - $300k

    • Business Loans - $0

    • Car Loans - $30k

    • Credit Card Debt - $5k

  • Future College Tuition Needs - $250k

  • Annual Car Expenses $3k

  • Annual Health Care - $12k

  • Annual Food & Utilities - $6k

  • Annual Living Expenses - $7k

  • Final Death Expenses - $30k

15 Years Total Expenses: ​$1,035,000

Just taking a quick glance at living expenses when you have a family can be a bit overwhelming.  If you have two kids that plan on going to a private college or out of state university, that tab can easily run up to $300k+.  An annual PPO health care plan can cost $10k - $15k, while annual food & utilities are easily $10k.  Everyone's lifestyles vary, but these are basic living expenses, and over 10 years that adds up to $200k - $250k.  Add that to the college tuition, and you are already over $500k, and we still have the mortgage, car expenses, and plenty more to consider.

The good news is, when it comes to coverage amounts, the more you buy the cheaper the cost per amount becomes.  In other words, if a $500k policy had premiums of $50 per month, the cost of a $1MM policy would not double to $100.  Actual premiums might be closer to $70 per month to get $1MM of coverage.  These of course are ballpark rates, and actual rates will depend on term length and your health rating.  

All in all, there is no right or wrong amount, and what you can afford is an important factor as well, but no coverage is not a great idea.  Whether or not you want your family to become instantly wealthy if you were to die early is another story, the reality is that there are significant, long term expenses you should consider when selecting your coverage.  Having no coverage is a scary choice, and we recommend getting at least some coverage that fits your budget, and we can work with you to find a term length and death benefit that meets those limitations.  

We're here to help set you up for success.  Working with an agent that offers no guidance on the process will likely result in higher premiums than necessary.  At Life Insurance 420 we can help you fill out your application so that your information is properly considered by the underwriting team and not left to assume the worst, and we can also help you apply to a marijuana friendly carrier if you enjoy occasional usage.  

Get started by filling out the instant quoter below, and we'll be in touch shortly to assist you in the process.  

"I'm a working wife and mother in the tri-state area, and the first time I applied for life insurance, my application was rejected.  I was surprised because I considered myself to be fairly healthy, but it turned out that they had tested for THC during my physical.  I  worked with Life Insurance 420 to find an insurance company that was OK with my weed smoking, and was finally able to get great rates and coverage.  I wish I had found them sooner, and definitely recommend this team!"