How Much Life Insurance Do I Actually Need?

One of the biggest misconceptions about life insurance is that a one-size-fits-all policy exists. The truth is, the amount you need depends on several factors. Here’s how to determine the right coverage for you.

The Basic Formula

A common rule of thumb is to have 10-15 times your annual income in coverage. But let’s break it down further:

1. Income Replacement: Multiply your salary by the number of years your loved ones would need support.

2. Debts & Expenses: Include mortgages, loans, and day-to-day living costs.

3. Future Goals: Consider college tuition for kids, retirement for a spouse, or other long-term expenses.

4. Final Expenses: Funeral costs can be high—life insurance can ease the financial burden.

   
   

Finding Your Ideal Coverage

Use this simple formula:Annual income x Number of years needed + Debts + Future expenses - Existing savings = Suggested coverage

Still unsure? I can help assess your needs and find the right amount for you.

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