How Much Life Insurance Does My Family Need?

  • Home
  • Blog
  • How Much Life Insurance Does My Family Need?

The answer to this question differs from one person to the next.

Consider the following:

Answering these questions will help you decide what percentage of your income you will need to provide your loved ones. In addition to this amount, you need to consider the rate-of-return you believe that your loved one’s can earn on the invested death benefit..

The chart below will help you to decide how much life insurance to purchase:

First choose the amount of annual income you would like to provide annually in the left column of the chart.

Now, select the average rate of return from the top rows that you feel your loved ones can earn on the invested death benefit. From there, run your finger down the column to the desired income you selected to see the amount of life insurance that you should buy.

Replacement Income Table
Desired Annual Income to Replace What Average Rate of Return Do You Feel Your Investments Will Earn?
4% 6% 8% 10%
Below is the amount of Life Insurance needed to produce the income desired
$10,000 250,000 167,000 125,000 100,000
$20,000 500,000 334,000 250,000 200,000
$30,000 750,000 500,000 375,000 300,000
$40,000 1,000,000 667,000 500,000 400,000
$50,000 1,250,000 834,000 625,000 500,000
$60,000 1,500,000 1,000,000 750,000 600,000
$70,000 1,750,000 1,167,000 875,000 700,000
$80,000 2,000,000 1,334,000 1,000,000 800,000
$90,000 2,250,000 1,500,000 1,125,000 900,000
$100,000 2,500,000 1,667,000 1,250,000 1,000,000

3 Comments

  • Riva Collins

    November 9, 2019 - 2:07 am

    It’s no secret that the digital industry is booming. From exciting startups to need ghor
    global and brands, companies are reaching out.

  • Obila Doe

    November 9, 2019 - 2:09 am

    It’s no secret that the digital industry is booming. From exciting startups to need ghor hmiu
    global and brands, companies are reaching out.

    • Riva Collins

      November 9, 2019 - 2:09 am

      It’s no secret that the digital industry is booming. From exciting startups to need ghor hmiu global and brands, companies are reaching out.

Comments are closed.