Life FAQs Q: How much life insurance should an individual own?
“Rule of thumb” suggests an amount of life insurance equal to 6 to 8 times annual earnings. However, many factors should be taken into account when determining the right amount of life insurance for you and your family. Important factors include: Income sources (and amounts) other than salary/earnings Whether or not you are married and, if so, what is your spouse’s earning capacity The number of individuals who are financially dependent upon you The amount of death benefits payable from Social Security and from an employer-sponsored life insurance plan Whether any special life insurance needs exist (e.g., mortgage repayment, education fund, estate planning need, etc.) Calculating the correct amount of life insurance to buy is not as simple as it appears. We recommend contacting us for help determining the right amount of coverage. As independent agents, we are unbiased advisors that will help you avoid buying too much, show you appropriate optional coverages for your need and recommend
Buying life insurance doesn’t make sense for everyone. If you have no dependents and enough assets to cover your debts and the cost of dying (funeral, estate lawyer’s fees, etc.), then insurance is an unnecessary cost for you.
