December 14th, 2010 
Vijaianand There are different ways to determine this number. Many insurance companies use Needs Approach which takes your annual income, your expenses and number of years to accumulate earning into account. They put altogether and come up with figure.
Usually 10-16 times of your annual salary would be most you need for your family to manage when you are gone. It can go up or down depending on the number kids waiting to go to college and so forth.
Meet with you CFP and talk about it. If you talk to the insurance carrier they will talk you to buy more than what you need. If you don’t have any insurance at this point, I strongly recommend to start considering term life policy which is cheaper and protects your family. Then you can think about Whole life or Universal life which has saving component to save/invest money with insurance for future.
Posted in 
Tags: 