Many people choose to purchase life insurance in amount that is 10 times their annual salary. Some people add up the important things in their lives that would be threatened if they were to pass (e.g. possible loss of home, children being unable to attend the college of their choice) and purchase a policy that would replace the funds needed for those things. If you are purchasing your policy for a specific purpose, such as your funeral or to pay the inheritance taxes on your estate, you can purchase the policy for the anticipated amount.
The amount of life insurance you should have varies for each person. Visiting with a good life insurance agent can help you make that determination.
If you have people who depend on you financially, you need life insurance. You need to consider three main areas in tabulating the amount necessary to protect your beneficiaries from suffering economic loss at your demise. You need to create a list all debt (like a mortgage, car loans, credit cards, student loans, future obligations (like education for your children and weddings) as well as your earning power to age 65. Adding up each category will establish a solid foundation for the amount of life insurance you need.
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The amount of life insurance you should have varies for each person. Visiting with a good life insurance agent can help you make that determination.