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Bronson Insurance Services

2345 W Ryan Rd, Suite H
Oak Creek, WI 53154

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How much life insurance do I need?

Think of life insurance as a safety blanket for your loved ones to replace your lost income should you pass away prematurely. Bronson Insurance Services in Oak Creek, WI can assist you with any questions you may have.

How much life insurance do I need?

When it comes to determining how much life insurance to purchase, there are two methods to follow.

The first, is to simply take your income and replace it by the number of years that you wish to replace it for – usually 10 to 30. Whatever figure you land on is how much life insurance to purchase. While this method is fast, it can be easy to purchase too little life insurance, so you should estimate higher than you think.

The second method, known as DIME, is calculated via the following:

  • Debts: Add any outstanding debts, not including your mortgage, which is highlighted below, such as student loans and credit cards. These are debts that your family is likely to be responsible for when you pass away.
  • Income: Take your current income and multiply it by the number of years that your family will depend on it.
  • Mortgage: Add the information from Debts and Income with the remaining balance on your mortgage.
  • Education: If you are paying for your children’s education or someone else’s, add the anticipated cost to the figures above.

Once you’ve arrived at your DIME figure, you’ll find the sweet spot for how much life insurance to buy. Unlike the income rule, the DIME method is far more comprehensive and likely to result in a more accurate number. 

For more information on life insurance and help with finding the right policy for your needs, give Bronson Insurance Services in Oak Creek, WI a call.

We’ll schedule a no-obligation consultation to review your options and answer any questions that you have. 

When is the best time to buy life insurance

Life insurance is a gift you give to the ones you love. It shows them just how important they are to you. It is not mandated in any state in the union, but it is one of the most important insurance types. It not only protects your assets if you are no longer there to provide support, but it can make the difference between your family having to give up the life they are used to and being able to remain in the life they are accustomed to. At Bronson Insurance Services in Oak Creek, WI, we provide a better level of service for our current customers and future ones.

When you are young

One of the best times to buy life insurance is when you are young. It may seem an unlikely time to buy insurance when you need it the least, but because you are likely healthy and rates are determined by age and health, being young is the best time to buy it. If you buy whole life insurance, you will be locking in at a very reasonable rate for the rest of your life. 

When you add dependents

The insurance that protects you when you’re young and single may not be the right insurance once you get married and have children. This is a good time to sit down with your insurance agent and discuss the options available to add the amount of protection you need. 

When you change jobs

If you have been counting on employer-provided life insurance, and you are changing employers, it is time to take a good look at what coverage you actually have and make sure you have enough to provide the long-term benefits you need. 

Contact Bronson Insurance Services in Oak Creek, WI, when it is time for you to buy life insurance. 

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