Low Cost Term Life Insurance Quotes
We offer low cost term life insurance quotes for all types of individuals. Regardless of your health record or age, we will do everything possible to find the best term life insurance rates for you. Our quote engine will search a database of the most competitive carriers in the industry to offer you the opportunity to save 30% - 70% on your life insurance policy!
How Much Life Insurance Do I Need?
This can be quite a complex question. Special circumstances, such as pre-existing medical conditions or tax-efficient estate planning, can significantly complicate the question of how much life insurance you need. The insurance industry itself has many different formulas. For now we're going to narrow life insurance down to its most basic purpose: replacing your annual income until the age you would have retired. Figuring out needs from this angle will satisfy the needs of most people. To calculate how much life insurance you need, you'll need two numbers:
- Current annual before-tax salary
- Years until retirement age
Given these two numbers, you can figure out how much your family will need to replace this lost income over this length of time should something happen to you. We've even got a handy look-up table to help you out with the calculations. (View Replacement Income Table)
Looking at the table, you'll see that in order to replace the equivalent of a $40,000 annual salary, in today's dollars, for 25 years, you should plan to leave your family a lump sum of roughly $803,000.
Sound like a lot? Before you go and do anything drastic, you may want to adjust this number. For example, there are some factors that can reduce the amount of life insurance your family will need, such as:
- Social Security benefits
- Other household income
- Savings
- Other income producing assets or investments