The number of policies to choose from, and the complexities of some forms of life insurance, can make comparison shopping difficult, if not impossible. Your need for life insurance changes with the stages of your life, starting with no need when you're young, progressing to greater and greater need as you take on more and more responsibility, and finally beginning to diminish as you grow older. Deciding whether you need life insurance is pretty easy. Figuring out how much you need is not easy at all.
Many people just pluck some figure out of the air that seems reasonable and settle on that.
Some lean on an old rule of thumb that says you need four to five times your annual income. The Life Insurance Menu Life insurance companies are brilliant at devising new kinds of policies. The Best Policy at the Best Price What to ask and request from your producer. Most states require agents to provide these numbers for cash-value policies if you ask for them. Interest-adjusted costs vary according to the type of policy and your age at purchase.