Knowing how much life insurance is enough to protect your family involves simple steps and calculations. You want to ensure your dependents are protected for as long as needed. At Phil Klein Insurance Group in West Bloomfield, MI, we will sit down with you and discuss everything that affects your need for life insurance.

How much life insurance you need depends on who is dependent on your income. The first thing you need to consider is what your actual income is after taxes. This is the amount that you are currently using to maintain your lifestyle. Your take-home pay is what you will need to replace.

Determining how long you will need to provide this dependent coverage would be best. If your children are young, this could be 15 or more years. Remember that if you pay into Social Security, your dependent children will be able to get survivor benefits until they are 18 years old. Your spouse, if they are caring for children under 16, will also be eligible. There is a cap on this benefit of 150% to 180% of your benefit. Take this into account when determining what you need for life insurance.

Multiply your take-home pay by the number of years you will need to provide for. Then subtract the amount of benefit SSI will provide. This is the base amount of life insurance you need. It is a good idea also to add the amount of your mortgage and some allowance for college for children to this figure. Your insurance agent can help you find an affordable policy.