Dave Ramsey: Insurance above and beyond?
I usually recommend people have 10 to 12 times their annual income in a good, level term life insurance policy. However, if you have a solid reason to believe your income will be jumping significantly soon, there's nothing wrong with basing your coverage amount on that figure -- if you can afford it, of course.
Understand that when I say "solid reason," I'm not talking about a hopeful attitude. I'm talking about something along the lines of finishing a medical residency, then making the jump to a six-figure income. That's the kind of logical thinking and planning I'm working with here. In that scenario, or something similar, a huge jump in income is virtually assured.
Great question, Wesley. -- Dave
Term life insurance, too?
You should always have life insurance coverage that's separate from anything an employer may offer. Think about it. You don't want to suddenly lose coverage if you change jobs, or have to leave your place of work because you're diagnosed with a major medical condition.
Both of you need 10 to 12 times your yearly incomes in good, level term life insurance. If you make
Term life insurance is very affordable. For just a few dollars a month you can leave your loved ones in great financial shape after you die. -- Dave
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