What Amount of Life Insurance Should You Purchase?

Life insurance can be an engaging topic of conversation.

Decision making about your career involves many assumptions and guesswork.

It strikes at our fears over losing someone close to us.

Misunderstandings about what a vacuum should do are common.

Some view cryptocurrency as a lottery ticket of sorts.

There’s always the occasional story about someone poisoning their spouse or staging their death (hi, Fletch!) so as to cash out on their policy.

Who said personal finance was boring?

Most of us struggle with answering this question: how much life insurance do I require?

What the Experts Suggest Regarding How Much Life Insurance You Need Many financial experts and specialists suggest purchasing some multiple of your annual salary as life insurance.

Financial expert Dave Ramsey suggests purchasing life insurance to replace 10X-12X your annual income.

Although that equation makes calculating income easy – simply grab a calculator and hit multiplication button – it oversimplifies things significantly, as I will explain later.

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