How Much Life Insurance Do You Need?

The rule of thumb for determining how much life insurance you need is applied after deciding how much income you will need during your retirement years.  If you decided that you will need $50,000. income each year during retirement to supplement any social security and retirement income you will receive, you divide the $50,000. by .04 to find out that you will need $1,250,000. worth of insurance to meet that goal.  The best time to buy life insurance is when you are young as the premiums increase with age.  Now is the time to start.