Before you get a life insurance quote or apply for life insurance coverage you may need to figure out how much life insurance you need to buy.
Do you know how much cash and income your dependents will need if you’re no longer around to provide for them? The life insurance coverage you carry on yourself or your spouse should come as close to that amount as you can possibly afford at this time as you can add more as time goes by.
A long-standing rule of thumb is that your total life insurance benefit should equal 4 to 7 times your annual gross income.
Special circumstances, such as pre-existing medical conditions or tax-efficient estate planning, can complicate how much life insurance you need.
If part of your plans are to create an inheritance or make a charitable contribution, buy enough life insurance to achieve those goals.