How much coverage do I need?
The amount of life insurance coverage you need to purchase depends on your personal situation:
- If you are replacing your income, a good rule of thumb is to purchase a policy that covers anywhere from 2 to 6 times your annual income.
- If you are protecting against depleting your retirement savings, assess your annual expenses and start by covering these for the life expectancy of your spouse.
- If your goal is to lower estate taxes, work with an attorney and an accountant to make sure you have the proper legal foundation and coverage.
