Shopping for life insurance isn't the most fun task in the world. It can be quite overwhelming and forces you to think about things you might not want to think about. But, as we age, the reality of our death becomes quite apparent. When you have children, it also is important to consider what would happen to them if something happened to you. One of the most frequent questions insurance agents have heard is whether or not an individual has enough life insurance. Let's take a look at some of the factors to go over when considering your life insurance policy needs and estate planning.

You Have Children

When you have children, you'll need to calculate out how much insurance you need based on their age and how old you are. The further away from 18, your children are, the more insurance you'll need. This ensures that they're financially covered. It will also help those that care for your minor children pick up expenses like food, housing, college, and more. The closer your children are to adulthood, you can start to phase out higher policies to save money for retirement.

Your Age

The younger you are, the more insurance you should have. These may seem silly but bear with us. When you're younger, you can typically purchase more life insurance at a cheaper rate. You should always do this as you can get more money for less money. In some situations, insurance policies are for life, and if you keep paying on them, you'll always have that same amount at a rate you locked into at a younger age.

Calculating Based On Your Wages

Knowing if you have enough money put back in your life insurance includes calculating your wages. If you're married, you'll want to provide for your spouse, which includes taking into consideration if something were to happen to you right now, would they be okay. Many experts advise that you should at least have five times your annual salary in life insurance. This is just a jumping-off point as you can tailor your insurance needs to reflect a greater cushion for the loved ones you leave behind.

Conclusion

If you're ever in question about your life insurance needs or other planning documents, you should sit down with an estate planning attorney. Life insurance is a critical component to estate planning and ensuring your family is taken care of in the event something were to happen to you and it is unexpected.