Knowing how to find the right term life insurance policy for your unique financial needs can be challenging. Here are four tips to make your conversation with your insurance agent just a little easier. Contact us today to learn more (630) 441-1003
Use our quick calculator to get an instant estimate:
#1 Rule of Thumb: 10-15x your income
The amount of life insurance you get should be enough to replace your lost income and cover your family’s future expenses, like mortgage payments, education costs, and bills.
#2 For the Budget-Conscious: 1% of annual income
If affordability is your top priority, the 1% rule may be the right estimation method. Just choose a coverage amount with annual premiums that add up to about 1% of your annual income.
#3 For Parents: Income + number of children
If you are a parent, estimate a coverage amount by using the “multiply by 10” rule, then add at least $100,000 for each child you have or plan to have.
#4 The DIME Method: Debts, income, mortgage, education
You can receive a more accurate estimate by adding up:
- Your outstanding debts
- Your income multiplied by the number of years your family will depend on it
- The amount left on your mortgage
- The costs of your children’s education
