How Much Life Insurance Do You Need?
When it comes to buying life insurance, deciding on how much coverage to purchase is one of your most important decisions.
Why? Because, you don’t want to buy too little life insurance and not have enough to accomplish your goals, and you don’t want to buy too much and not be able to afford paying for some coverage you don’t really need.
That’s why you want to take time to accurately determine the correct amount of life insurance coverage to provide the financial security and protection your family needs, to accomplish your long-term financial goals.
That means, you’ll want to take into consideration your family’s debt, annual income, mortgage or rent, future education costs for your children, your savings, assets and liabilities, and monthly expenses, among other things.
Once you have figured out how much life insurance you need to accomplish your goals, you’ll want to determine how much you can afford to spend on life insurance each year and remain within your budget.
How Much Life Insurance Should You Purchase?
The easiest way to figure out how much life insurance to buy is to choose a death benefit that's a multiple of your annual income.
The most common choices include 5, 7, 10 or 20 times your annual salary, though many financial advisors suggest playing it safe and choosing the higher amount of life insurance, since your need may increase as you get older and take on greater financial responsibilities.
How Much Life Insurance Protection is Enough?
Life Insurance Rule of Thumb
Figuring out how much life insurance you need is easier than you might expect: just calculate 10 to 20 times your annual income.
This approach may be the best and easiest way to account for inflation and household expenses, and to make certain your family members (beneficiaries) have enough money for the long term.
The most accurate way to determine your need for life insurance is to use a life insurance needs calculator.
Just answer the questions in the calculator below and click on the button to calculate your total need for life insurance.
How Much Life Insurance Can I Buy?
Life insurance coverage is available between $20,000 and $10 million, but the amount of coverage you can qualify for depends on your income, overall net worth, your age, health and budget.
For example, someone with a net worth of $500,000 would not be able to obtain a $10 million policy, and coverage between $1 million and $2 million would be better suited for their financial situation.
What is the Typical Cost of a Life Insurance Policy?
The average cost of life insurance is usually between $50 and $100 a month; however, you can be able to get basic amount of life insurance coverage for as little as $15-$20 a month if you are young and healthy.
How Much Does Life Insurance Cost for Me?
Your actual rate per $1,000 of insurance will depend on factors like your age, and the type of life insurance and duration of coverage. In addition, your personal risk factors will impact your rate, including your health, family health history, lifestyle, tobacco use, driving record, occupation, hobbies, etc.
Make sure you compare pricing among several life insurance companies to help you find the most affordable policy from a highly-rated, financially secure insurance carrier.
It’s quick and easy to request and compare pricing for life insurance. You just visit a life insurance website, fill out a short Quote Request Form, and click on a button to instantly see the lowest prices for life insurance right on your screen.
JRC Insurance Group has access to more than 45 leading life insurance companies and allow you to compare the best pricing from top-rated insurers instantly.
Top Pick – JRC Insurance Group
JRC Insurance Group helps you shop, compare and save on life insurance. Regardless of your age or health background, we'll shop our 40+ insurance companies and find you affordable life insurance you need to protect your family and fit your budget. Compare the best life insurance rates for savings up to 73%. Get Your FREE Quote.
Life Insurance Coverage Amount
Life Insurance Cost Calculator
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