How Much Life Insurance Do You Need?

How do you decide ow much life insurance you need?

One of the most important parts of purchasing life insurance is deciding how much coverage to purchase. After all, you want to make sure your family has the coverage they need to be financially secure if you should pass away.

One way insurance agents decide how much coverage you need is to recommend you buy 7-10 times your annual income. This has been used for a number of years as an estimate of your life insurance needs. The only problem is that it doesn't really take into account your personal situation, your current savings, number of dependents, and how old they are.

However, now there is a life insurance needs estimator you can use online that asks you some basic questions about your personal situation and gives you an instant, accurate estimate of your life insurance needs based on your current financial condition and future financial needs for your family.

You can use this term life insurance calculator to quickly and easily determine how much life insurance you need before comparing your free life insurance quotes.

NEW! Here’s How to Buy up to $500,000 of Term Life
Insurance without any Medical Exam,
Just a Few Health Questions.

How Do You Determine How Much Life Insurance You Need?

Where can I find out how much life insurance I need to protect my family?

In the past, life insurance agents would recommend that consumers purchase between 7-10 times their annual income in life insurance.

For instance, if you made $50,000 each year, they would recommend you carry at least $350,000 of life insurance. That way your family could invest that money and hopefully live off of the interest, using the interest on their investments to replace your income.

However, with interest rates so low now, it would take at least 20 times your annual income to replace your earnings if your beneficiary could get a return of 5% on their investments.

Today, their is a quick and easy method to use that takes into consideration your personal situation, including your investments, earnings, and financial needs for the future.

Now, you can use a life insurance needs calculator to come up with an accurate estimate of your life insurance needs.

You answer some basic questions about your financial situation and you get an instant estimate of your needs for life insurance.

Here's a term life insurance calculator you can use now, it only takes a minute.

Then when you are ready, you can request your free, instant term life insurance quotes from over 70 top-rated life insurers offering you savings up to 75%.

NEW! Here’s How to Buy up to $500,000 of Term Life
Insurance without any Medical Exam,
Just a Few Health Questions.

Tips to Decide How Much Life Insurance You Need?

How much life insurance do you need?

Depending on your personal situation, you may need more, or less, than you may have expected.

How can you find out?

There are a few things you want to consider first.

How much money do you have saved? How many people rely on you for financial support, and how much do you earn. Also, how many years do you want to provide financial support for others?

There are two basic ways to determine your life insurance needs.

You can use 7-10 times your annual income as a guideline. If you make $50,000 per year, perhaps $500,000 would be the right amount of life insurance to provide financial security for your family. However, this does not take into account your savings.

Another way to decide is to use a life insurance calculator. How this works is you answer several questions about your current financial situation, and then the calculator gives you an instant, accurate estimate of your life insurance needs.

No matter what you do, before you buy life insurance, make sure you know how much coverage you need.

Why? because, you don't want to leave your family with less financial security than they really need, do you?

And, you don't want to pay more than you have to for life insurance coverage you don't really need.

Here's how you can find out how much life insurance you need.

NEW! Here’s How to Buy up to $500,000 of Term Life
Insurance without any Medical Exam,
Just a Few Health Questions.