| Author | Message | ||
     Kubang Yavvanam Kaatesina Bewarse Username: Kubang Post Number: 8556 Registered: 09-2011 Posted From: 161.141.1.1 Rating: N/A |
Yes
No Okay. here is simple formula you can follow: Let's say you are earning $100k/year, when you are gone (and those earnings) how much do your dependents need to maintain the present life style? If your answer is say $60k/year then your dependents need $1.2 million in insurance money assuming they can get 5% return in perpetuity. this is without inflation, if you factor in 2% per year inflation in living costs, your needs will escalate accordingly. I guess you get the picture. there is no one answer to your Q, it all depends on individual situation. In my case, my company offers one time salary as basic coverage and allows up to 9 times salary if you pay the premium. I took maximum allowed. Also don't forget to take ADD (accidental death or dismemberment) in addition to voluntary life insurance. Ignorance is bliss |