The ten times rule5/11/2023 ![]() ![]() If you make $50,000 a year, for instance and choose coverage at 7 times your annual income, the value of your life insurance policy would be $350,000. Why 5 to 10 times your annual income?įor many of us, five to 10 times our annual income seems like a lot of money. To go from a wide range to the true right amount for you, let’s dive in. But for most, it is a good guide for the range you should consider. Many experts recommend buying a life insurance policy that’s five to 10 times your pre-tax annual income, with a term length that lasts for at least the number of years until your children are out of college or your mortgage is paid off.ĭoes this rule of thumb work for everyone? Of course not. “ How much life insurance do I need?” is a question that’s at the forefront of most life insurance buyers minds. ![]()
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