05/15/2022
Life Insurance - 'It's simple math'
Just like insuring a car or home, life insurance protects an individual’s income potential, providing their family with a financial legacy if something happens to them.
The rule of thumb is to have 10 times your annual income in life insurance, according to insurance nonprofit Life Happens, to cover expenses beyond the funeral like housing, mortgage, childcare, health care, and education, so your family won’t be in debt.
Even if you only make $40,000 a year and work at least 35 years, your human capital would be $1.4 million. But many aren’t accounting that way and therefore, pass along smaller windfalls to their heirs.
