Agency Owner, A1 Insurance LLC, Arizona, California Agency
Well it depends on your age and the need. If you are over 75 year old you can get up to 100,000 in most companies. If you are under that age you can get as much as you can show the insurance company a need. But a normal person can get up to 500,000 of life insurance with no problem if you can pay the premium
Co-Founder, Coastal Financial Partners Group, California
Income is the primary determinant for underwriting the amount of life insurance coverage allowed (applied for plus inforce amounts). Maximum coverage under age 45 will be 25 times earned income or more. The earned income multiples grade down as you age. Your budget will also determine what you can afford.
Above age 70, net worth is very important in determining maximum coverage allowed. Net worth, income and the premium for the requested coverage are considered together using different formulas. Generally, the maximum total coverage allowed will be 50% of net worth.
Co-Founder, Coastal Financial Partners Group, California
How much life insurance for income replacement purposes you can get is primarily a function of your income if considering a purchase during your working years. Each insurance company has its own maximum limit of the amount they will issue you considering all of the life insurance you have on your life but a good rule of thumb for insureds under age 45 is up to 25 times earned income. The multiple is less at older ages and in retirement years, net worth becomes a key factor.
The amount of life insurance coverage is directly correlated to the amount you can economically justify which may include future values on income and/or estate growth. There is also some play here within the retention of life insurance companies to be more benevolent with amounts that fall into multi-planning scenarios such as domestic and business insurance purchasing.
You can get the amount of life insurance for which you qualify financially. Generally speaking, the more income you have, the more life insurance you are qualified to get. However, assets will also be considered, and the younger you are, the more coverage you can usually get.
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Above age 70, net worth is very important in determining maximum coverage allowed. Net worth, income and the premium for the requested coverage are considered together using different formulas. Generally, the maximum total coverage allowed will be 50% of net worth.