When choosing the right amount of life insurance to purchase, the consumer should first consider:

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It is important for the consumer to consider their financial goals and reasons for purchasing life insurance before deciding on the amount of coverage needed. This will help them determine their specific needs and ensure that they purchase enough coverage to protect their loved ones in the event of their death. Factors to consider may include income replacement, paying off debts or mortgages, providing for children or dependents, and leaving a financial legacy. The amount of money the consumer can afford for monthly premiums and their current assets will also come into play, but these should be secondary considerations.

When Choosing the Right Amount of Life Insurance to Purchase