How much life insurance do I need?

You must take many things into consideration when determining how much life insurance you need, and everybody’s circumstances are different – so there is no fixed answer to this question. However there are ways to help you figure out the minimum amount of life insurance you should purchase. It all starts with a thorough examination of your current and future financial obligations, and your current and projected income to meet those obligations.

Then you need to also consider final expenses, such as estate taxes and funeral expenses. You need to consider what resources your family will have access to other than the death benefit, and you need to determine for how many years beyond your death that they will require to make up for your annual income. Generally speaking you need to have at least 7x your annual income in life insurance, 10x if you have children. In other words, if you have kids and earn $50,000 per year, you should at least have $500.000 in life insurance protection. But again because everybody’s needs are different it is best to get the advice of a life insurance professional to determine the amount of coverage you need. You can also get a good idea by using our life insurance calculator.

Affordable Life Insurance Rates
Are Waiting For You!
Choose Your State

Related Information

Why You Should Have Life Insurance Coverage

Here are 7 essential reasons for you to have life insurance. Compare term and whole life insurance and find a policy that's right for you and your family.

Read More

How to Calculate Your Life Insurance Needs

Before purchasing life insurance, calculate how much money your family will need if you die unexpectedly. Learn how to evaluate your life insurance needs.

Read More

Calculating The Right Amount Of Life Insurance

In order to determine your life insurance needs, you must first figure out how much money is needed to meet all future financial obligations.

Read More

What are the Benefits of Term Life Insurance?

Protect your family from facing a financial burden after your death with a term life insurance policy.

Read More

Calculating How Much Life Insurance You Need

Knowing how much life insurance you do need is dependent on your lifestyle, health, and income.

Read More

Term Life Insurance for Parents Over 60

Learn about popular types of life insurance policies for parents who are over the age of 60.

Read More

Yes, You Can Buy Life Insurance On Your Parents

It's possible for you to buy life insurance for your parents. Learn more about what types of policies are available.

Read More

Reasons for Buying Life Insurance

Life insurance is a good idea for anyone who has financial dependents. Here are 5 top reasons you should consider purchasing life insurance.

Read More

The Benefits of Buying Your Own Life Insurance

If you need life insurance coverage, you should consider purchasing term life insurance directly from an agent. Here’s why.

Read More