How Much Life Insurance Is Enough? Do the Math One guideline calls for life insurance coverage that equals 7 to 10 times your annual salary, but this may be too simple for your specific financial situation. As an alternative, you could calculate a benefit amount that would provide enough investment income (without dipping into principal) to help preserve your family’s current lifestyle and meet their long-termneeds and goals. Given the rising cost of higher education, for example, youmay want additional coverage for your children’s college expenses. Women May Need More Coverage Many households now rely on two incomes, and 7 in 10 households with children rely on a woman’s salary. For women who have a spouse, young children, or even parents who depend on them financially, sufficient life insurance could help replace their incomes and provide essential financial support. And for stay-at-home moms, the proceeds of a policy could be used to help cover the high cost of child care and other household services in their absence. Sources: LIMRA, 2022 53% of men 46% of women have life insurance
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