David Hillelsohn Insurance Agency

Trusted insurance professional since 1990.

For your convenience, our most common customer questions are answered right here.

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Q: How much life insurance should I own for income replacement?

A: If the purpose of the life insurance is income replacement to meet future obligations, here are a few factors to consider.

Are you the primary wage earner and is there another source of income for the family if something were to happen to you?

How close are you to retirement?  The longer the time-line, the more years you need to account for when calculating future income potential.

What financial obligations would continue even after your death (living expenses, mortgage, education, special needs, alimony, etc)?

What are the income needs for those who may rely on you to meet basic living expenses?

As a general rule of thumb, many advisers suggest seven to tens times annual income as the starting point for most insurance recommendations.  The number of children you have and their ages, your financial liabilities, current cash flow, retirement income goals, and your interest in legacy planning will influence how much insurance you should own.  These factors will also influence how long you need the insurance, and will help to identify the type of insurance that is right for you.

We’ll review different types of insurance in our next FAQ Forum, or contact us now to start a dialogue about what is right for you.