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One rule of thumb is to buy an amount equal to five to seven times your annual gross income. But the real question is how much your family will need when you're gone. That depends a lot on the family and what stage of life you're at.

When you plan to buy a life insurance policy, the factors to consider when deciding on the amount of coverage include funeral expenses, education loans, any pending mortgages or debts, and the financial support your family would need in your absence. Five to ten times your annual income is the normally recommended amount suggested. It is preferable to get a professional opinion about this before signing up for anything and many insurance providers and companies offer a personalized analysis of your financial needs, as part of their service.

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Q: How much life insurance should you buy?
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Related questions

Do vets get life insurance?

They can buy life insurance...and should!


What type of life insurance should you buy?

Mortgage insurance


Where can one buy life insurance online?

One can buy a life insurance online at Colonial Penn, AAFMAA, OLE and many others. One should take care and time before applying for a life insurance. Some life insurance sites might be untrustful.


Should I look for affordable whole life insurance, or is it better to just buy a term life insurance policy?

Whole life insurance does come with several benefits. I would personally suggest term life insurance the the cost savings.


Why should an individual in their 50s buy life insurance?

An individual in their 50's should buy life insurance, because that's the age one becomes more likely to die of a heart attack or have some type of accident.


Should you buy an annual travel insurance policy if you dont travel often or should you buy insurance on each trip?

Annual travel insurance is a much better option, even if you don't travel often. Buying insurance each trip is much more costly.


Should you buy life insurance from your children?

If your children sell life assurance, and you want some, and theirs is the best for you, then do it.


Where can I buy a life insurance plan?

You can buy a life insurance plan, individually, or a family life insurance plan, from a bank, or an insurance company, such as all state, progressive, or state farm.


My work offers life insurance but it's not very much, am I able to buy additional life insurance independently?

Yes, of course. There's nothing stopping anyone from having multiple life insurance policies.


Where to buy mortgage life insurance?

You should never buy mortgage life insurance. It is an expensive simplified issue term policy. Just buy a regular term life insurance policy. Find an independent agency and have them run you quotes on whatever amount is your mortgage plus living expenses for your family for 5 or 10 years.


How much is a life insurance worth when mature?

You can buy any amount of life insurance that you want (and that you can afford). Policies can be as small as $500 or as large as many millions of dollars.


How much does twenty four hundred dollars a year buy you in a term life insurance?

It depends on your age and the length of the term. Try an online life insurance calculator.