Agent, Rural Mutual Insurance Co., Union Grove, WI
A nearly impossible question to answer. How much premium can you afford? What carrier are you purchasing coverage with? What is your health/medical history? What is your family/medical history? What is your occupation? What is your geographic location? What is you age? What is you height/weight? These are just some of the factors used to determine the amount of coverage and the premium that you would pay for that coverage; that a carrier might use. Most carriers will handle coverage rates up to one million on a regular basis. Contact a local agent to find out what would be available to you.
Financial justification is an important component when purchasing life insurance. Here are the basic components in determine the death benefit amount you want use to indemnify your beneficiaries. Add up all your debt (mortgage, auto, student loan, credit cards, etc.) Add up all your future obligations (children’s education, weddings, retirement.) Multiple your gross earnings from today until your target retirement date. Add all these categories together and you've identified the bulk of your death benefit that you can justify to the life insurance company.
President, The Firm of Steven H. Kobrin, LUTCF, 6-05 Saddle River Rd #103, Fair Lawn, NJ 07410
Underwriters have a number of ways of answering this question. It all depends on why you want to buy the policy.
If you want to replace your income, then they use a table to determine a multiple of your income. For example, depending on the company, a person in their 20s or 30s may end up with 20 or 30 times their annual income as a face amount limit.
If you want to cover a personal debt such as a mortgage, or a business debt such as a bank loan, then you simply have to prove the amount due.
If you need to meet the terms of a legal contract, such as a partnership agreement or divorce decree, then you have to document those terms.
If you use life insurance to cover an estate tax obligation, then you need a financial statement proving your net worth.
And you know what? You could use a policy for multiple needs, or buy multiple policies with each one covering a different need.
.JPG){kind=avatar}
If you want to replace your income, then they use a table to determine a multiple of your income. For example, depending on the company, a person in their 20s or 30s may end up with 20 or 30 times their annual income as a face amount limit.
If you want to cover a personal debt such as a mortgage, or a business debt such as a bank loan, then you simply have to prove the amount due.
If you need to meet the terms of a legal contract, such as a partnership agreement or divorce decree, then you have to document those terms.
If you use life insurance to cover an estate tax obligation, then you need a financial statement proving your net worth.
And you know what? You could use a policy for multiple needs, or buy multiple policies with each one covering a different need.