Like most Americans, you probably have insurance on your home, your automobile, and even on your iPhone.  This is great, as should something happen to any one of these high-priced commodities, you’ll be taken care of.  However, when it comes to insuring one’s life, alarmingly Americans tend to be far more lax in their approach to ensuring that their loved ones are taken care of should the unthinkable happen.

And while it’s not likely that your house may burn or you’ll be in a car accident, the “expiration” time comes for us all – whether we’re prepared for it or not.  And the statistics support the fact that we are not nearly as prepared as we should be.  According to LIMRA (formerly known as the Life Insurance Marketing and Research Association), a full third of Americans have no life insurance at all, and of those who do, their coverage amounts to less than four times their yearly income.  However, according to the LIFE Foundation, a nonprofit organization dedicated to assisting consumers to make smart insurance decisions to protect their families’ financial futures, most insurance professionals agree that you need at least 10 times your family’s annual income to ensure your family is comfortable now and into the future.

So, before you decide that a $250,000 life insurance policy should be plenty of money for your family to survive on should you pass on unexpectedly, the LIFE Foundation encourages you take the following into consideration when determining if you have enough coverage:

Your family’s immediate needs, such as:

• Health care costs
• Funeral and burial costs
• The need to take time off from work or school to grieve

Everyday or ongoing needs, such as:

• The mortgage or rent
• Car payments
• Traditional cost-of-living expenses such as food, clothing, heating and cooling, utility bills
• Paying off credit cards or other debts

Future needs, such as:

• Your children’s college education
• Your surviving spouse’s retirement needs
• Paying for weddings or celebrating the birth of grandchildren

Your family’s existing resources, such as:

• Your collective savings
• Your spouse’s income
• Any life insurance you might already own
• Investments

After adding up all of these costs and available resources, if there is a gap between the sum at which you arrive and what would equal 10 times your annual income, it’s time to get more insurance.  Also, since every year tends to brings change, no matter how large or small, if you’ve experienced any of the following life changes, be sure to mention them to your insurance agent or advisor as you review your insurance needs:

• The birth or adoption of children or grandchildren
• Marriage, separation or divorce
• Changes in you or your spouse’s employment situation
• Purchase of a new home
• Loss of a home
• Home mortgage refinance
• Reverse mortgage
• Serious changes in you or your spouse’s health
• Long-term care needs of family members
• Need to provide financial or health care assistance to an aging parent
• Current retirement/savings status
• Receiving an inheritance or financial gift
• New tax or estate planning concerns

With all this in mind, when you meet with your insurance professional, you’ll be better prepared to confidently address your life insurance needs while providing him or her with the facts needed to determine how much and what kind of coverage would be best for you and for your family.