How can you determine the exact amount of life insurance you need?
You’ll want to ensure that you get sufficient coverage, without overpaying for coverage you don’t need.
Continue reading to find out how much life insurance you really need:
Table of Contents:
How Much Life Insurance Do I Need?
The proper amount of life insurance coverage will depend on your REASON for purchasing life insurance.
Here are a few guidelines:
- Income Replacement (for the “bread winner”) – 10x your income
- Non-working Spouse – half the coverage of the working spouse
- Key-Person Insurance for Businesses – 1-3x annual revenue the key employee is responsible for
- Buy-Sell Coverage for Business – 1 to 1.5x current value of the business
- Final expenses – $10,000 to $50,000 for funeral, burial, and debts