How Much Life Insurance Coverage Do I Need?
December 14th, 2009
It is a personal choice as to how much life insurance you really need, but many money gurus will recommend that you carry a payout amount equal to five to seven years of your annual income. However, if you are young with children and a mortgage, you may want to increase that to up to ten years of your annual income. For example, that would mean that if you make $75,000 per year, you would need to carry an insurance policy with a payout of anywhere from $375,000 to $750,000. Keep in mind that the purpose of your life insurance is to continue to provide the amount of your income to your dependents, should you pass away.
Entry Filed under: Business