Before you apply, you have to do some groundwork. One of the most important things to do is add up how much life insurance your family needs.

To get started with these calculations, gather all of your debts and add them up. Step one is to make sure your life insurance is big enough to pay off your debts.

Step two is to take your annual income and multiply it. We are assuming you have people who rely on your income. If you have those people, your life insurance needs to replace your paycheck.

There is no “perfect amount” of life insurance that works well for everyone. Each situation is different and everyone will have different needs, but most life insurance experts suggest getting anywhere from 10 to 15 times your annual income. In most cases, this will work fine, but it’s important that you calculate what your exact needs are.

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