What Is The Right Amount Of Life Insurance For You?

What is the right amount of life insurance for me

How Much Life Insurance Do You Need?

What is the right amount of Life Insurance for You? Great Question? You’re most likely observing a pattern—answering yes towards these initial couple questions have you here, located at the heart of the information, questioning exactly how much life insurance you will require. This specific component requires the majority of work; nevertheless, it still doesn’t have to become that complicated.

Actually, as a typical rule, please take a look at our simple Life Insurance Needs Calculator to come up with an answer which will likely wind up being very close to the correct solution for you. Follow the main chart to find your very own age, and then multiply the suggested or Maximum Available number by your very own up-to-date total annual income, and voila—you can have the total amount of protection you ought to be considering.

For instance, if you happen to be a 38-year-old man who earns $55,000 per year in earnings, and you choose the suggested quantity of coverage attainable, you are going to arrive at $825,000 of insurance coverage—just that simple.

Once more, this is a standard calculation; however, it provides you with an excellent idea regarding what to look at. Suppose you wish to look a little further before talking with a life insurance representative regarding the right amount of life insurance for you. Let’s check out a couple of other factors.

Things to Consider When Calculating Life Insurance Needs

When buying a life insurance plan, surprise — it is honestly not likely exactly how much you need — but actually how much your family will require during the moment of one’s death. This approach will depend on a couple of things:

  • What will it take to meet my immediate obligations?
  • What is the future income amount needed to sustain the household?

Debt Owed

Besides a potential balance on one’s mortgage, do you hold any other personal debt? If so, that will probably mean you tend to be paying out more funds as compared to what you are earning—unless you don’t prefer paying off all of your account balances in a regular fashion, which generally is a less than ideal habit too. Therefore, if this is the situation, you will likely want to get the right amount of life insurance for you to cover that debt.


What are your spending habits every month? In case you are living with a spending budget, this one is a straight forward exercise you most likely already have the quick answer. You must know the amount of money you are spending every month. That previously mentioned $825,000 of term insurance coverage probably come across as a significant amount. Still, in actuality, it may not be the right amount of life insurance for you. 

Let’s suppose you pass away, and one’s family gets the $825,000. Should they begin to invest it utilizing an income diversity strategy then make five percent yearly, which would mean $41,250 of annual investment income. Nonetheless, if your family members will depend on more than $41,250 every year, one will likely need additional coverage.


If your capable of saving more money each month, good for you. Also, you may have held from different investments aside from life insurance—like bank accounts, money market accounts, mutual funds, CDs, bonds, stocks, and other assets, don’t disregard these. Based on exactly how much one keeps, you might require less life insurance as an outcome. Then again make sure to take into account factors such as your retirement expenditures, the college tuition expenditures for your kids, etc. Whether you currently have that money put ahead concerning these sorts of expenses, you will certainly not require additional protection. Alternatively, you guessed it, and you will likely need more insurance coverage.

Spouse’s Income

Let’s suppose your spouse will likely keep working following your death. Precisely what is his or her yearly earnings and how much longer would they anticipate to work? You might want to answer these questions while furthermore taking into account their marginal tax rate—which is the rate of taxation you have to pay on your maximum dollars of income.


Finally, don’t overlook the fact to calculate the rate of inflation because—and this is a reality of life—the cost concerning living keeps heading up year after year.

Finding That Life Insurance Policy That’s Exactly Right For You

So now that you possess a fairly good idea things to look for whenever deciding precisely the right amount of life insurance coverage you need. And that the necessary computations that go together with it—it’s time to speak to a licensed Coach B. Life Insurance agent who will talk you through the whole process of finding a policy that will best suit your needs all while fitting your budget.

Once you are ready to apply—or if you have a few more questions—pick up the phone and call 1-800-342-1537.

Being an independent insurance agency, we work with each of the best insurance companies, so we will use it to get the best price for you and handle any worries you might have. We negotiate with the insurance companies upon your behalf, and the policies are issued immediately or inside of 48 hours, depending on the insurance service provider you eventually choose.

Finding what is the right amount of life insurance for you is what we do at Coach B. Let’s talk about your needs and precisely what we could do to assist you.

Life Insurance Calculator

Life Insurance Need Calculator
This calculator will help you to decide how much life insurance you need if your survivors invest the life insurance benefits they receive.

Funeral cost, estate taxes, etc. ($):
Amount needed to pay off non-mortgage debt ($):
Amount needed in emergency fund ($):
Amount needed in college fund ($):
Expected average annual living expenses ($):
Expected spouse's average annual income after taxes ($):
Annual Social Security Benefits ($):
Spouse's current age (#):
Value of current liquid assets ($ total of savings, investments, etc.):
Expected survivor's investment strategy:
Life insurance needs:

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About Coach B.

After starting his financial career with Phoenix Home Life Insurance Company back in 1992, Scott decided he wanted to provide people with an easier and more enjoyable way to buy life insurance. That was the start of Coach B. Life Insurance, whose mission is to be transparent, honest, and helpful to customers — without ever bugging or pushing them.

In the years since then, he has worked tirelessly to improve the process of shopping for insurance. His goal is to make sure that everyone who comes to Coach B. — whether they end up buying a policy or not — has the best possible experience.

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