Welcome to Quotacy’s Q&A Friday where we answer your life insurance questions. Quotacy is an online life insurance broker where you can get life insurance on your terms. I’m Jeanna and I’m Natasha. Today’s question is: how much term life insurance do I need? Life insurance is an important purchase. While you know you need it, it’s understandable to be unsure of exactly how much. The right amount of life insurance is different for everybody. The amount you need depends on your finances, your financial goals, and your family situation. Quotacy has a life insurance calculator we’ll walk through with you today. If you’re unsure how much term life insurance coverage you need this calculator can help. The main purpose of term life insurance is to replace the income you provide to your loved ones should you die unexpectedly. No one knows when they will die. We all hope to live long healthy lives, but if that’s not the case, term life insurance can help your loved ones in their greatest time of need. Your paychecks ensure your family has a roof over their heads and food in the kitchen. The first number to enter into the calculator is your annual income. If you’re a stay-at-home parent, consider the cost to replace the childcare and domestic services you take care of. If you died unexpectedly tomorrow, how long do you think it would take for your family to financially get back on their feet? The average answer to this question is 10 years but it may be different for your family. If your children are older, teenagers perhaps, then five years may be more appropriate. If you just had your first child, 15 or 20 years may be a better choice. If you aren’t quite sure, 10 is a solid number to go with. Making sure your family can stay in their home is one of the best things you can do for them especially if you have young children. Losing a parent is emotionally devastating. Disrupting the child’s life as little as possible is best. Your life insurance policy’s death benefit can provide money to make sure the mortgage keeps getting paid. Enter your mortgage balance here. If you have any debt that can be passed on, such as co-sign loans or joint credit card debt, add the amount in the next space. If you only have debt that would be discharged upon death, such as federal student loans, you can leave this blank. Some parents have the means to contribute to their children’s college tuition. Some students rely on financial aid and take out loans. If you do plan on paying for your children’s college, add this to the calculator. If you aren’t sure how much to add, consider the annual averages and multiply this by how many children you have. For example, the average tuition pricing for one child at a local university will cost almost $41,000 for a four-year bachelor’s degree. The next thing to think about is the cost of a funeral. Whether you want to be buried or cremated makes a difference. In the U.S., the average cost of a funeral and burial is $10,000. If you rather be cremated, you can cut that number in half. If you die tomorrow, your assets are distributed according to beneficiary distributions and what you state in your Will. If you already own life insurance, whether it’s a group policy through your job or an individual policy you plan on keeping, subtract the coverage amount. Quotacy’s life insurance calculator adjusts in real time so you can play around with it to determine how much your answers affect the suggested coverage amount. If you have trouble answering any of the calculator’s questions, scroll down and read more about the whys behind determining life insurance needs. When you’re ready, you can run a free quote to see the estimated cost to buy the suggested amount of term life insurance coverage. The cost of life insurance does vary by state, age, gender, and whether or not you smoke, so you’ll need to pop in those answers before it’ll bring up your term quote. But, don’t worry, the quoting tool remembers what the life insurance calculator suggested. From here you can pick how long you want your term coverage to last. Term life insurance is temporary. It doesn’t last your entire life. If you’re buying life insurance as backup protection for your growing family you may want as much as 40 years of coverage. If your children are older or you’re nearing retirement, a 10-year term policy may be sufficient. Play around with the numbers until you’re comfortable with the price and after that it’s easy to apply right online. Ready to find out how much term life insurance you need? Just click the link in the description below. Thanks for watching. If you have any questions about life insurance, make sure to leave us a comment. And if you’re ready to get quotes check out Quotacy.com. We’re here to help you find the best deal on the life insurance you want. Bye! Thanks for sticking around. We’d appreciate it if you Liked the video and hit that fancy little Subscribe button to see us every week. Bye!