Rough “rules of thumb” suggest an amount of life insurance equal to 6 to 8 times annual earnings. However, many factors should be taken into account in determining a more precise estimate of the amount of life insurance needed. Important factors include:
Income sources (and amounts) other than salary/earnings
Whether or not the individual is married and , if so, what is the spouse’s earning capacity
The number of individuals who are financially dependent on the insured
The amount of death benefits payable from Social Security and from an employer sponsored life insurance plan
Whether any special life insurance needs exist (e.g. mortgage repayment, education fund, state planning need, etc.)
Please contact us for a precise calculation of how much life insurance is needed.