This is an age-old question. A lot of experts give a rule of thumb of 7-10 times your income. However, you really need to take into account a lot more than that. First, what are your current and future financial obligations? Do you have school-age children, a mortgage, a business, parents that are getting older? There are many good life insurance needs calculators out there that can help you get a better ball park figure. These calculators walk you through various questions you should consider before determining how much term life insurance you need. However, the best way to figure out how much you need is by talking with a life insurance agent. He/she will be able to ask the right questions you need to think about before making a purchase.
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1. I agree, this is a very important question to consider when buying life insurance.
First, consider why you need life insurance, then decide how much life insurance you need.
It's important to choose an adequate amount of protection to provide for your family, hopefully, so they can continue there current lifestyle, and help to pay the bills, and achieve their future goals, for example; college, buying a home, or retirement.
It may be much more accurate to use a life insurance needs estmator, rather just pick 7-10 times your annual income. The needs calculators take into consideration your current financial situation, your goals, and estimated rates of return on your money.
It only takes a few minutes to use one of the calculators online so it may be worth the time to give you a good indication of the proper amount of life insurance protection to meet your needs.
Term Life Insurance ( ) at 1:55PM on May 20th 2008