The answer is different for everyone.

Financial Security

Most of us want to protect our family’s financial security. Life insurance proceeds can help with everyday living expenses, rent and mortgage costs, student loan debt, and other ongoing financial obligations. Proceeds can also help fund future dreams like higher education and retirement. At a minimum, your life insurance should be sufficient to cover these needs. Experts recommend 10-15 times your income, but for a more precise calculation, use our free calculator.

What Else Should You Consider?

• Have you accounted for “hidden income” that you receive through your employment? Benefits like your employer-subsidized health insurance premiums or the matching contribution to your 401(k) plan can easily be overlooked. Be sure to include these financial benefits in your needs calculation.
• Are you the owner or a key person in a small business? If the unimaginable happened to you, how would that affect your business and its employees? Life insurance can help give you peace of mind that your business will survive.
• Will you earn considerably more money in the future? If you can afford it, consider buying more life insurance than you need right now – if you wait, you’ll pay higher premiums.
• Do you have family members whose regular contributions defray your everyday living expenses? Consider the significant costs that could be incurred if those contributors were no longer there to manage your household and dependents. Your non-salaried family members need coverage too.
• Do you want to create an inheritance or make a charitable contribution? If leaving a legacy is important to you, make sure you have enough life insurance to achieve those goals too.

So, how much life insurance is right for you?  Start your calculation now!