With so many life uncertainties, you may need to review your current life insurance to determine if it’s adequate. But how much life insurance do you need? To be fair, it’s not a straightforward answer. However, with the help of Hanneken Insurance Agency Inc. of Little Falls, MN, figuring how much life insurance you need should be easy.

Here are a few steps to guide you.

Figure out your financial picture

Are you about to invest in life insurance? Painting a picture of your financial plan would be a great place to start. Where are you financially, and where are you headed? Better yet, you can involve a financial advisor to identify gaps in your plan and figure out how life insurance can plug the holes. 

Why do people need life insurance?

If you are to determine the amount of life insurance you need, the first step is to determine why you need life insurance in the first place. Most people need life insurance to:

• Finance final expenses
• Transfer wealth to dependents
• Pay for debts
• Supplement retirement income
• Ensure the success of their business

After identifying why you want life insurance, the next step is figuring how to calculate your life insurance. 

How to calculate the amount of life insurance you need

There are numerous methods to compute how much life insurance you need. Let’s look at some.

• Multiply your income by 10: It’s an outdated model, but it can help estimate the life insurance you need.
• The DIME method: This method considers your debts, income, mortgage, and education (DIME) in the computation. This method is better than the “10 times method,” but it ignores your current financial assets. 

While there are numerous life insurance calculation methods, the general rule is that the life insurance you need equals your financial obligations less your existing assets that can settle bills. 

Buy life insurance today!

If you are still unsure about calculating your life insurance, don’t hesitate to contact Hanneken Insurance Agency Inc., serving Little Falls, MN and its environs. Besides, we will help you choose a life insurance plan that fits your needs and budget.

If you live in the Little Falls, MN area and want to start a business, it is crucial to invest in commercial insurance. Commercial insurance protects you from things such as property damage, theft, employee injury, and more. But, unlike traditional insurance, there are various types of commercial insurance that you must familiarize yourself with. Understanding each type of commercial insurance will help you pick the best policy and coverage for you and your business.

Here are the different types of commercial insurance.

Business liability insurance

Business liability or general business liability insurance is one of the most essential types of insurance for businesses of all types. Business liability protects you from being sued by a third party outside of your business. In addition, it helps cover legal fees, settlements, and awards.

Workers’ compensation insurance

Workers’ compensation covers medical care and partial wages if your employee gets injured on the job.

Property insurance

Property insurance is essential to protect your place of business from natural disasters, floods, and fire. Depending on your plan, you can cover everything from furniture, inventory, technology, and anything you deem necessary for your business in addition to your property.

Business auto insurance

Business auto insurance is crucial if your business relies on vehicle transportation. For example, if you or an employee get in an accident, your business auto insurance will cover the costs.

Umbrella policies

Umbrella policies are crucial if you’re a business that is prone to major losses and lawsuits. Umbrella policies work by covering whatever your original policies won’t.

If you’re looking to start a business in the Little Falls, MN area reach out to Hanneken Insurance Agency Inc. to discuss what commercial insurance would be right for you!