Skip to content
Home » Blog » William Schantz How Much Life Insurance Do I Need?

William Schantz How Much Life Insurance Do I Need?

William Schantz How Much Life Insurance Do I Need?

Making sure your loved ones are taken care of financially is one of the most important aspects of life. It’s also important to make sure you have some kind of financial protection in case anything happens to you, and that’s where life insurance comes in. When considering how much coverage you will need, it’s not always easy to determine since there are so many factors involved—age, current debt or mortgages, dependents—and these situations can vary widely from one person to the next. That’s why understanding the basics of life insurance – such as what types are available and which best fits into your lifestyle – is essential when considering how much protection you need for yourself and your family. In this blog post, William Schantz covers everything there is to know about getting the right amount of life insurance coverage for your specific needs!

How Much Life Insurance Do You Need? William Schantz Answers

When deciding how much life insurance to buy, it is important, as per William Schantz, to consider the financial commitments of your family and loved ones. Life insurance provides a death benefit to those left behind when you die, which can include funeral costs and other expenses that may arise after your passing. The amount of coverage you need will depend on many factors like income level, number of dependents, debt load, investments, and more.

As a starting point for determining how much life insurance coverage you should have, experts suggest considering five to ten times your annual income as a good estimation. For example, if your annual salary is $50,000 per year, then you would likely want to purchase between $250,000 and $500,000 in life insurance coverage. This number is a good estimation, but it may not be sufficient for those with larger families and more financial commitments. To get an accurate estimate of the life insurance coverage you need, consider all of your financial obligations now and in the future, such as:

1) Mortgage payments – Consider how much your mortgage will cost annually and multiply that amount by the remaining years left on your loan to determine how much coverage you would need to adequately cover this debt.

2) College tuition expenses – If you have children or plan to, consider how much it will cost to send them to college and multiply that number by four or five years – this is usually the length of time most students require in order to graduate.

3) Retirement savings – How much income will you need to replace your earnings if you die before retirement? Consider what age you plan to retire and how much money you would need each year until then in order to fund your retirement.

4) Living expenses for family members – Determine how long it would take for a surviving spouse or other dependent family members to adjust financially after the loss of the primary income earner. This may require replacing lost salary, medical bills, daycare costs, or any other living expenses that will be impacted.

According to William Schantz, the amount of life insurance coverage you purchase should consider not only current obligations but also future financial needs that may arise, such as home repairs, vacations, cars, etc. Purchasing too little life insurance can leave your family in an unstable financial position, while over-insuring can cause you to pay for coverage you don’t need. Depending on the type of policy you choose, a general rule of thumb is that life insurance should not exceed 20 times your annual income.

According to Forbes magazine, 90% of adults do not have enough life insurance coverage to adequately protect their families and loved ones.1 Additionally, recent studies show that 44% of Americans overestimate the cost of life insurance by two or three times what it actually costs 2. Lastly, US News & World Report notes that annually one in seven households lack adequate protection from catastrophic illness or death 3 – this means they could be putting themselves at risk if they don’t have enough life insurance coverage.

For example, if a family of four has two working parents earning $50,000 per year each and they also own a home valued at $200,000 with a mortgage balance of $150,000, then the family should consider what would happen to them if one of the primary income earners were to pass away suddenly. To protect their financial future in this scenario, the family may need to purchase up to $1 million in life insurance coverage depending on other expenses not mentioned here.

William Schantz’s Concluding Thoughts

In conclusion, it is important, as per William Schantz, for families and individuals to think about their current and future financial obligations when considering how much life insurance they need. The amount that you decide will depend on your annual income, debts, financial goals, and family size.

Get 30% off your first purchase