Experts will say that you should purchase 10 to 20 times your annual income but this is a generalization and since life insurance needs will depend on your personal financial situation, you’ll need to do a little more work to arrive at the ideal coverage.
Calculating your coverage
You can also calculate coverage the easy way by using an online life insurance needs calculator. But here’s a simple way to manually calculate your personal life insurance needs:
Start with your annual income before tax deductions.
From your annual income, calculate the percentage of income your family needs for living expenses. This figure should not include the amount you put into savings.
How many years do you think your family would need to be covered before they are able to financially fend for themselves? Determine the number of years you would like your benefits to cover and multiply this number with living expenses.
0 Comments