How Much Life Insurance Do You Need? – Family Budgeting

April 1, 2022 by - Home

There is no doubt that you and loved family members will be looked after and taken care of by nsurance. What amount of life insurance is it that you should get from your broker? In this video Dave Ramsey shares his life insurance advice.

Life insurance is structured in a manner that if you die, your family will receive an amount in one lump that is specified in the contract. The most efficient way to spend the amount is to put it into an investment it and receive about 10% in return for your an investment. Mutual funds, particularly make excellent investments since they can spread the risk. The amount of life insurance that is required depends on the amount your family wants to have to live off.

Everything boils down a simple formula. Consider the amount you want to live on and multiply it by. If you would like to live with 100,000 per year then you’d need $1,000,000 life insurance. The amount could be lower in the event that you already have investments. Simply subtract the amount you’re already making investments from this. That’s all there is to it.


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