How much coverage do you need? If you're going to buy life insurance, make sure you've got enough. There is no simple answer to how much coverage is enough. Some planners say you need enough insurance to replace five to seven years of your salary. If you have young children or significant debt, you should bump up your coverage so you have enough to replace as much as 10 years of your salary, they say. That would mean a person making $50,000 a year should have anywhere from $250,000 to $500,000 worth of coverage or more.
Remember, the sole purpose of life insurance is to replace your income in case you die, so that your dependents can maintain their current lifestyle. Factors to consider include whether the surviving partner will have childcare expenses if one partner is out of the picture. Do you have other assets on which to draw? Will your children be out of the nest soon? These, and many other factors, influence the decision on how much coverage you need.
So go to your GE Insurance Life Planner and ask for free consultation and advice.
Ivon Chee, invited GE Speaker from Singapore.
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Dk Nani, upcoming new planner, giving group's opinions.
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