How much life insurance should an individual have?

Rough "rules of thumb" suggest an amount of life insurance equal to 10 to 12 times annual earnings.

​However, many factors should be taken into account in determining a more precise estimate of the amount of life insurance needed.

It is recommended that a person's insurance advisor be contacted for a precise calculation of how much life insurance is needed. 

Important factors include:

• Amount and duration of income needed to be replaced
• Current assets and liabilities
• Age of children and any special needs
• Current insurance policies and benefits
• Whether any special life insurance needs exist (e.g., mortgage repayment, education fund, estate planning need), etc.
• Business obligations 

Bill Zimmer is a specialist in income replacement, estate planning, and business continuation. Contact him for an independent insurance review. 

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