Life insurance coverage may depend on your financial goals and needs.
A large part of choosing a life insurance policy is determining how much money your dependents will need. Choosing the face value—the amount that your policy pays if you die—depends on a few different factors. As such, the minimum amount of coverage you need may be very different from what someone else requires. Financial experts often recommend purchasing 5 to 15 times your annual income in coverage, although your personal number may be higher or lower. Here are some of the most important considerations for choosing a minimum amount of life insurance.
How to determine the amount of Life Insurance Protection required
Total Financial Needs minus Resources Available*
*Money in Banks, EPF, Free Life insurance Policies, Employer benefits, Club or Association membership benefits, Inheritance, Investment