How much life insurance do i need?

 New here though and the principal and actuary of Cobra Insurance Services 2/3 videos are serious about using the wrong life insurance policy could be a $21,000 mistake and if they do I'll be showing you how to determine how much life insurance you need will discuss how life insurance needs decrease as you get older and why it's important to consider this prior to purchasing a policy will talk about the importance of creating a financial plan and how cold can help save you from spending thousands of life insurance coverage that you don't really need one of the most important questions that people can ask themselves prior to purchasing a life insurance policy how much life insurance do I really need in order to answer that question yet the first take a serious look at your assets and liabilities and how they change over time for those unfamiliar with these terms liabilities are financial responsibilities that need to be paid back either item such as your mortgage credit card debt and keep your college and retirement expenses for you and your family assets on the other hand are items that are for monetary value that help you pay back your liabilities example your savings accounts investment accounts and spouses income for you and your family your life insurance paid over the course of your life it's just the difference between the amount of your liabilities and the amount of your assets this life insurance protection in combination with your family's current assets would allow your family to pay off their liabilities even if you were to pass away unexpectedly it's important however that a couple's assets and liabilities change over time but young couple has relatively low and high future liabilities generally they don't have a lot saved in the bank but still have a lot of future financial responsibilities such as paying off the mortgage and saving for retirement and their children's college education an older couple on the other hand that's why I said it relatively low liabilities over the years and older couple has managed to save for retirement also paying down their mortgage and children's College expenses for them or their children are more likely to be out of the home and financially independent therefore while you may have high life insurance needs as they get older their life insurance Hazel decrease I will show you in the following slides it's important to take this into account prior to purchasing any life insurance policy let's go ahead and take a look at an example to illustrate some of these points will be taking a look at a 35 year old married father was in great health with 2 small kids who have someone they send the college however he doesn't know exactly how much life insurance you need that is not a financial or Insurance professional the first thing you need to do that in order to determine how much life insurance he needs it's create a basic long-term financial plan this is one of the things we do for free here and we create a financial plan for a client and help them determine the amount they need to save each year in order to meet their goals for paying for their kids college expenses as well as their own retirement he didn't use his financial plan as the basis for determining how much life insurance our clients need