You should have 10 to 12 times your annual income in term life insurance.
How Much Term Life Insurance Do You Need?
You should have 10 to 12 times your annual income in term life insurance. Make sure the policy is guaranteed renewable. Life insurance is not about leaving an inheritance. It is about replacing the income your loved ones depend on.
For example, if you earn $50,000 per year, you would need $500,000 in coverage. Your family would receive that payout if something happened to you. Your spouse could invest it in a solid mutual fund earning a 10% annual return. By withdrawing 10% each year, your spouse would receive $50,000. This replaces your income without touching the principal. This is how life insurance replaces your income. It also protects your family's financial future.
Use our Term Life Insurance Calculator to find out how much coverage you need.