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How much life insurance do I need?

Beginner's guides
How much life insurance do I need? Image

There is no one-size-fits-all answer. The list below may help you to decide how much life insurance you need.


Current income  

How much of your income is essential for supporting your family? A general rule of thumb is to cover an amount that is equal to 5-10 times your annual income.


Stage of life 

Different life stages affect the amount of life insurance needed. Younger individuals with dependents may require more coverage compared to empty nesters or retirees.


Financial obligations 

When deciding how much life insurance you need, consider your current debts. For example, mortgages, car loans, and credit card balances.

It may be useful to consider final expenses such as funeral costs. The death benefit can be used to pay for final expenses.