How Much Life Insurance Is Enough? Do the Math One guideline calls for life insurance coverage that equals 7 to 10 times your annual salary, but this may be too simple for your specific financial situation. As an alternative, you could calculate a benefit amount that would provide enough investment income (without dipping into principal) to help preserve your family’s current lifestyle and meet their long-termneeds and goals. Given the rising cost of higher education, for example, youmay want additional coverage for your children’s college expenses. Women May Need More Coverage Sixty-seven percent of married couples with children rely on two incomes. And 5.6 million working mothers maintain a household without a spouse. For women who have a spouse, young children, or even parents who depend on them financially, sufficient life insurance could help replace their incomes and provide essential financial support. And for stay-at-home moms, the proceeds of a policy could be used to help cover the high cost of child care and other household services in their absence. Sources: U.S. Bureau of Labor Statistics, 2024 (2023 data); LIMRA, 2024 57% of men 46% of women have life insurance
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