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Tennessee Life Insurance: How to Determine Your Coverage Amount

When you are considering life insurance, there are a lot of things to take into consideration. The amount of life insurance that you get is a big question. You want to be able to get the most coverage at the rates that work for you. You also want to be sure that your beneficiaries will be taken care of after you are gone.

At Anthony Lancaster Insurance Inc., we know that Memphis, TN residents also want to make sure their dependents are taken care of beyond funeral expenses. We can help you to determine the amount that you need with a policy that works best for you.

How to Determine Life Insurance Coverage Amount

The best way to determine the life insurance coverage amount is to examine what assets or debts you may have at the time of your passing, and how that would be handled by your beneficiaries. It also depends on how many beneficiaries or dependents you have, and what their standard of living currently is.

If you have a mortgage for example, you may want to have that as your minimum coverage amount, with funeral costs and expenses. 

When you are thinking of coverage amount, you may also want to consider what kind of life insurance to get. The kind of life insurance you get could make a difference in your overall coverage.

Permanent Life Insurance or Term Life Insurance

For term life insurance, you would pick a set amount of coverage, and this coverage would be paid out in one lump sum if you passed away during the term. For permanent life insurance, the same sum is paid, but there is no term to your policy. 

After this policy has been in place for some time, you may get some additional benefits from it, such as getting paid dividends on a monthly basis. These figures could be calculated into your life insurance coverage amount when you are designing your policy.

Get a Quote

When you are considering life insurance coverage, the amount is a question that could make you sweat. You don’t need to do that alone. At Anthony Lancaster Insurance Inc., we help Memphis, TN residents to design the life insurance policy that is best for them. Call us for a quote today.

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