There is no pat answer for how much life insurance someone should have, but there are wonderful calculators to help people consider what their loved ones would need to weather the financial effects of their loss. It also assists them in considering what they would like to leave behind.
Business from Sherman, TX
Answered on Apr 19th, 2018
Life insurance has many different uses. We like to have a conversation with the individual and really get a picture of what their lives are. Then we discuss how they would like life insurance to work for them be it to be used as a living benefit, legacy or just simply to cover final expenses. There really is no set number. It is entirely up to the individual what levels they need. We have a variety of options available to fit each individual need.
I think the answer by Marty below is a good start....there is no exact formula for the amount but buying term life for most is the best option....it is less costly and provides the most coverage for the dollar spent. Remember there are lots of other vehicles to save for retirement , college and emergencies and no life policy will give you all of this in one package. You are buying this in case of your death so buy lots and spend little with term and sleep soundly knowing that is something happens to you a large check will assist any dependents in living the life you had hoped they would have
That depends on a lot of factors, but mostly what their trying to accomplish. And of course how much they understand about how life insurance works. It might be for a short term fix, business purposes, income replacement, estate taxes, tax free income, guarantees, retirement, loans, living benefits, etc., or just a death benefit in case someone dies too soon.
Not everyone needs the same amount, if your younger and have a wife, children, house etc. you obviously need more than a single person, that is why I sit down with each individual and do a profile and question session to analyze their own personal situation. It is our duty and responsibility to take care of persons who need and depend on us! Call me for your own personal analysis....Ann Savage HealthMarkets Broker xxx-xxx-xxxx
Primerica prides itself in helping in aswering this question by simply offering a Free Financial Analysis. This analysis will answer not only what the person or persons should be insured for but it will also answer all the other pieces of the family's financial setup with the main focus being on retirement and the later years when kids are out of the house, mortgage is paid and no more debt exits. But never combine your policy with a cash savings (whole life) this will make your policy more expensive. Primerica has an Increasing benefit rider that helps with cost of inflation and totally optional for the insured. In reference to building your nest egg Primerica has great relationship with well know investment companies that can handle your needs separately from you Life Policy. More effective and less cost involved. If you really think about it working towards being debt free and vested properly early in your life then you don't need any Life policies in your latter years.
It totally depends on your situation, dependent children, mortgage etc. that is why I sit down with indivuals for a complimentary analysis to determine amount plus it also depends on budget to determine what type of Life Insurance because everything from term to IUL to Living Benefits that's why it's important to have a Broker, as myself, to find a solution for U!
There are a lot of great answers here! A needs analysis is defiantly the preferred way to go. That said, I recommend a minimum of 3x annual salary + outstanding debit. If you can afford it a permanent product that builds cash value and can be used as a source of income in the future is better than term. If you can't afford it anything is better than nothing and you can add more coverage when you have the funds.
I always answer that question with a question....If you could get as much life insurance as you wanted and pay nothing for it how much would you want? The truth is people would take as much as a company would offer if it was offered for free so the real question is how much do you want to invest to own the most amazing product ever created. Now more than ever life insurance is a miracle that delivers significant value during our living years as well as leaving a financial legacy when we die.
If you examine the return on life insurance relative to ALL the values of the product that can be enjoyed throughout your life and even in death it is clearly the most amazing product ever created.
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Answers (71-80)
There is no pat answer for how much life insurance someone should have, but there are wonderful calculators to help people consider what their loved ones would need to weather the financial effects of their loss. It also assists them in considering what they would like to leave behind.
Life insurance has many different uses. We like to have a conversation with the individual and really get a picture of what their lives are. Then we discuss how they would like life insurance to work for them be it to be used as a living benefit, legacy or just simply to cover final expenses. There really is no set number. It is entirely up to the individual what levels they need. We have a variety of options available to fit each individual need.
That depends on a lot of factors, but mostly what their trying to accomplish. And of course how much they understand about how life insurance works. It might be for a short term fix, business purposes, income replacement, estate taxes, tax free income, guarantees, retirement, loans, living benefits, etc., or just a death benefit in case someone dies too soon.
A person should have 3 times there yearly income.
Primerica prides itself in helping in aswering this question by simply offering a Free Financial Analysis. This analysis will answer not only what the person or persons should be insured for but it will also answer all the other pieces of the family's financial setup with the main focus being on retirement and the later years when kids are out of the house, mortgage is paid and no more debt exits. But never combine your policy with a cash savings (whole life) this will make your policy more expensive. Primerica has an Increasing benefit rider that helps with cost of inflation and totally optional for the insured. In reference to building your nest egg Primerica has great relationship with well know investment companies that can handle your needs separately from you Life Policy. More effective and less cost involved. If you really think about it working towards being debt free and vested properly early in your life then you don't need any Life policies in your latter years.
It totally depends on your situation, dependent children, mortgage etc. that is why I sit down with indivuals for a complimentary analysis to determine amount plus it also depends on budget to determine what type of Life Insurance because everything from term to IUL to Living Benefits that's why it's important to have a Broker, as myself, to find a solution for U!
There are a lot of great answers here! A needs analysis is defiantly the preferred way to go. That said, I recommend a minimum of 3x annual salary + outstanding debit. If you can afford it a permanent product that builds cash value and can be used as a source of income in the future is better than term. If you can't afford it anything is better than nothing and you can add more coverage when you have the funds.
I always answer that question with a question....If you could get as much life insurance as you wanted and pay nothing for it how much would you want? The truth is people would take as much as a company would offer if it was offered for free so the real question is how much do you want to invest to own the most amazing product ever created. Now more than ever life insurance is a miracle that delivers significant value during our living years as well as leaving a financial legacy when we die.
If you examine the return on life insurance relative to ALL the values of the product that can be enjoyed throughout your life and even in death it is clearly the most amazing product ever created.