How Much Life Insurance Do You Need?

Various sources estimate that a person needs four to nine times annual income to adequately protect family income. These estimates, however, are only a rule of thumb. Individual needs should be considered when determining the proper amount of life insurance protection. Your estimate is based on:

• Lifestyle;
• Income potential, not just current income;
• Ordinary expenses, such as mortgage, child care, taxes, and regular monthly bills;
• Extraordinary expenses, such as a child's college education or care for an older family member or a special needs child; and
• Federal estate taxes, which start at 37% for most estates exceeding $1 million

A Brown and Brown, Colorado Springs, representative can help you determine whether term or permanent best meets your needs and which of our products best suits your situation.