How much life insurance should I have?
The amount of life insurance coverage you need will depend on a number of factors, like the amount of mortgage or personal debts you have, the age of your children if any, and the amount of income your family will need in your absence. In the least, you will want enough life insurance coverage to pay for the mortgage, your funeral, and enough income for your children until the age of 21.
The amount of life insurance coverage you need will depend on a number of factors, like the amount of mortgage or personal debts you have, the age of your children if any, and the amount of income your family will need in your absence. In the least, you will want enough life insurance coverage to pay for the mortgage, your funeral, and enough income for your children until the age of 21.
Normally, life insurance should cover the following in the event of death:
- Pay off primary mortgage to keep the property for family
- Pay off 20-30% of investment mortgage to make net investment income positive
- Provide sufficient income to family till the youngest child turns to 21 years old