Saving You Money For Life

Most experts recommend 5-10xs your annual income. And, according to LIMRA, the average life insurance need is about $459,000, but the average amount of life insurance owned is only $126,000.

Before you simple pick a number, you should really evaluate all your needs. How? There are a few ways to do so. I strongly recommend talking to a licensed life insurance agent. However, if you don’t feel comfortable doing so, then check out a needs calculator. A needs calculator will look not only at your annual income, but also the percentage of income needed by your dependents, your age, the number of years the benefits are needed, your estimated annual inflation rate and an estimated annual interest rate.

When making your decision, keep in mind how inexpensive term life insurance is today. If you’re thinking of asking for a quote for $300,000 ask the agent to also give you a quote for $500,000 – you might be surprised at how little the price increases.

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