| How Much Life Insurance Should
I Buy?
There is no definite way to determine exactly how much coverage
you should purchase. The following information, however, will provide
a guideline you may choose to follow.
Consider the Needs of Your Family
It is important to look at your specific situation. You may
be the single source of income for your family, or you may be unmarried
without dependents. The financial needs of those who will be left
behind when you die should be primary considerations.
For example, if you are married with children, you will need
more coverage than a single person without dependents. If your
spouse provides the primary childcare and household responsibilities,
you need to consider insuring the value of those contributions
to your family's economic situation.
A Guideline
Your individual needs will have the greatest influence on the
amount of coverage you need. The following is a guideline we have
created and recommend that our clients follow when considering what amount
of life insurance to purchase.
| Family Situation
and Living Style |
Coverage Guideline |
- low mortgage
or rent payments
- single
- no children living at home
- low level
of debt
- may care for elderly parents
|
1-3
times your annual income |
- low mortgage
or rent payments
- no children living at home
- low level of debt
- surviving spouse will work
|
3-5
times your annual income |
- moderate
mortgage payment
- medium level of debt
- good amount of savings
|
5-7
times your annual income |
- young children
- new home
- significant mortgage payment
- other debt
- surviving
spouse wants choice of not working
|
7-9
times your annual income |
The Life and Health Insurance Foundation for Education has a
"life insurance needs calculator" on their website that can be
very helpful in determining your individual needs.
Click here to use their life insurance needs calculator.We at Bultman
Financial are committed to help you determine the best policy for
your needs. Contact us
to discuss your needs for financial protection today!
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