Amount to Buy


How Much Life Insurance Coverage Do I Need?

The amount of coverage you select should be equal to the financial loss which the death of the insured will impose upon you (or your beneficiary) and many Industry experts recommend that you purchase 8 to 12 times your current annual income.

However, this rule of thumb does not account for current assets or any special needs you and your family may have. Additionally, your age and income have a direct bearing on your life insurance needs. Generally, the younger you are, the more insurance you need to replace a loss of lifetime income for your beneficiary.

We recommend you consider these important factors in estimating your family’s financial needs in the event of your death.

  • The amount of yearly income needed
  • The number of years this income will be needed
  • The average annual percentage of interest your investments will earn
  • Future college education expenses
  • Anticipated funeral and burial expenses
  • Retirement needs
  • Special needs for children or other family member(s)

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Joel Moyer