How Much Life Insurance Should One Have?

  1. 710 POINTS
    Larry Tew
    Larry Tew Financial, Raleigh, NC
    There really isn't a fixed answer to this question. I see life insurance as a want decision rather than a need decision.

    One should have an amount of insurance that replaces the amount of lost income they want to guarantee to their beneficiaries.

    Another approach would be to insure one's human life value, which would be about as much as an insurance company would allow one to buy
    Answered on April 5, 2013
    flag this answer
  2. 4330 POINTS
    Jerry Vanderzanden, CLU, ChFC
    Co-Founder, Coastal Financial Partners Group, California
    This is one of the most commonly asked questions about life insurance. I agree with Larry that there is no specific answer.

    Most studies suggest many have no life insurance at all and of those who do, many are underinsured. We often meet with clients who have less than one times their current annual income. Insurance companies generally approve coverage amounts up to 25X income (under age 45).

    There are many calculators online which can help such as this one:

    http://www.myconfidentfuture.com/insurance/Calculator_01.aspx

    But there is no substitute for an experienced life insurance professional who can help you plan to have the right amount based on need and budget and can adjust the plan over time to meet changing needs.
    Answered on April 5, 2013
    flag this answer
    3. Did you find these answers helpful?
    Yes
    No
    Go!

Add Your Answer To This Question

You must be logged in to add your answer.


<< Previous Question
Questions Home
Next Question >>