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FAQs
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Q. How do I calculate the
amount of Life insurance I need to purchase?
A.
The amount of life insurance you purchase mostly depends on your income. The purpose of life insurance is to replace income lost due to the death of the main income earner in the family. The general rule of thumb used by insurance companies is that you need approximately 7 to 10 times your annual income in life insurance. On death the insurance company pays the insurance to your beneficiary. The calculation of the amount needed for business life insurance is different. The amount recommended is based on an evaluation of the company.s need to indemnify itself against the loss of a key employee or the amount needed by the company to fund a buy and sell agreement on the death of a partner. Our agents would be pleased to help with this evaluation.
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