Investment Policies

Life Insurance-Investment Policies 

How much life insurance should you buy?


The answer to that question is 10 to 15 times your income.You'll need to evaluate the reason you're buying life insurance in order to properly answer this question. Once you can specifically answer the question Why am I buying life insurance you should be a long way towards determining a proper amount. 

The biggest pitfall most people make in deciding how much life insurance they need is in treating this purchase as an emotional decision. Life insurance is a financial product and should be treated as such. Looking at an amount of life insurance and thinking 'that's too much' can leave you drastically under insured, and worse, leave your dependents without enough coverage in the event of your death. 

As noted above, the first question you need to ask yourself is "why am I buying life insurance?"


For most of us with dependents and a debt loan the reason behind purchasing life insurance is so that our dependents can maintain their lifestyle in the event of the death of an income earner. In short, most of us are looking to maintain a standard of living for our dependents in the event of our death. That's the need and directly leads us to the answer of how much life insurance we need. Ans: 10 to 15 times your income. If life insurance buying is approached in the proper manner it can be very beneficial to yourself and your family. You need to take the time to give some thought to a subject that can be very unpleasant. I guess that is why most people don't think about it, or at best think about it only after they have had a brush with death, or when a life insurance professional brings up the subject. Sometimes these people wait until it is too late to do something about such a critical matter.

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