I had to do a little research on this guy. Looks like he has a radio show talking about Financial Services and everything in between. With some digging, I found this statement on his website:
Life insurance is meant to replace your income. My rule of thumb is to buy an amount equal to 10 times your annual salary.
On that note, realize he is saying "a rule of thumb" which I tend to agree with by the way if I am just casually talking to someone about Life Insurance and how much you need. I do prefer to get into specifics with your situation, which any agent/broker should do for you, to determine what you need to cover like your biggest deb, your mortgage to replacing income and for how long.
A thought is to replace income to retirement age (age 65, 70, etc.) as at this time, you do not earn income any more. Hope this helps.
Please consider talking to a local agent or feel free to reach out to me.
10 times your income is one of the more generic ways to calculate the amount you need. It's a good one... The RIGHT benefit amount is so different for each individual. Income, debt load, size & age of family, etc. all go into the calculation. Often, we write two policies to meet a need. Especially those with young families. A LARGER benefit for a shorter term and a lower benefit to fill the long term needs. - gravy.
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Life insurance is meant to replace your income. My rule of thumb is to buy an amount equal to 10 times your annual salary.
His website is: http://www.clarkhoward.com/categories/insurance/life-insurance/ where I found the answer.
On that note, realize he is saying "a rule of thumb" which I tend to agree with by the way if I am just casually talking to someone about Life Insurance and how much you need. I do prefer to get into specifics with your situation, which any agent/broker should do for you, to determine what you need to cover like your biggest deb, your mortgage to replacing income and for how long.
A thought is to replace income to retirement age (age 65, 70, etc.) as at this time, you do not earn income any more. Hope this helps.
Please consider talking to a local agent or feel free to reach out to me.