Insurance Flipbook 2019

How Much Life Insurance Is Enough? Do the Math One rule of thumb 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-term needs and goals. Given the rising cost of higher education, for example, you may want additional coverage for your children’s college expenses. Women May Need More Coverage Many households now rely on two incomes, and 4 in 10 households with children have a mother who is the sole or primary family earner. Still, women with life insurance have only 75% of the average coverage that men have. 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: CNNMoney, 2018; CNBC, March 23, 2018; Employee Benefit News , December 27, 2016 (most current data available) ; , November 19, 2018 62% of men 56% of women have life insurance