“Rule of thumb” suggests an amount of life insurance equal to 6 to 8 times annual earnings. However, many factors should be taken into account when determining the right amount of life insurance for you and your family.
Important factors include:
- Income sources and amounts other than salary earnings
- Whether or not you are married and, if so, what is your spouse’s earning capacity
- The number of individuals who are financially dependent upon you
- The amount of death benefits payable from social security and an employer-sponsored life insurance plan
- Whether any special life insurance needs exist – (mortgage repayment, education fund, estate planning need, etc.)
Calculating the correct amount of life insurance to buy in PA & NJ is not as simple as it appears. We recommend contacting Rumer Insurance at: 877-407-8637 to help determine the right amount of coverage you need. As an independent agent, Rumer Insurance has unbiased advisors that will help you avoid buying too much, show you appropriate and optional coverages for your need, and recommend a company that will best serve your interests in Pennsylvania & New Jersey.