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Grove Insurance Agency

319 E. Main St.
Brownsburg, IN 46112

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How to Determine How Much Life Insurance You Need

At Grove Insurance Agency, we offer a variety of insurance options for the Brownsburg, IN area, including life insurance, commercial insurance, and auto insurance. 

Estimate Your Life Insurance Needs 

You can quickly estimate the amount of coverage you need by multiplying your yearly income by 10. You can also add $100,000 in coverage for each child that will attend college.  

Get a Clear Picture of Your Life Insurance Needs 

If you want a more accurate picture of how much life insurance you should purchase, follow these simple steps. 

Determine Your Financial Obligations 

The first step to determining how much life insurance you need is to look at your financial obligations. Start by multiplying your annual income by the number of years you want to replace the income. 10 years is a good rule of thumb, but you may need more depending on your situation. 

Add your mortgage balance and any other debts that you have, including credit card and medical debt. You should also add any future expenses, including college tuition, if applicable, and funeral costs. 

Subtract Your Assets 

Next, you’ll subtract your assets from your financial obligations. This includes savings, investments, and cash. 

Life Insurance Amount Needed

Once you’ve subtracted your assets, you’ll know how much life insurance you should have. If you currently have a policy, compare this amount to the coverage provided by your current policy. If there’s a gap, you need more life insurance coverage. 

If you don’t currently have a life insurance policy, you should get a policy that provides coverage equal to or greater than your total. 

We Are Here To Help!

If you need life insurance in Brownsburg, IN or aren’t sure if you have enough coverage, contact Grove Insurance Agency. Our knowledgeable agents will help you determine the best policy for your needs.