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| How
much life insurance should you own? | | Rough
rules of thumb suggest an amount equal to 6 to 8 times
your annual earnings. However, there
are other things to consider when determining how much
life insurance you need. Important factors
include: income sources (and amounts) other than salary/earnings;
whether or not you’re married and,
if so, your spouse's earning capacity; the number of
people who are financially dependent on you;
the amount of death benefits payable from Social Security
and from an employer-sponsored life
insurance plan, whether any special life insurance
needs exist (e.g., mortgage repayment, education
fund, estate planning need), etc. Talk to an insurance
adviser for a precise calculation of how much
life insurance you
need. |
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