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Is the 10-times-income rule enough for life insurance coverage?

Answer

The 10-times-income rule (buy coverage equal to roughly 10 to 12 times your gross annual salary) is a reasonable first cut, but it is deliberately crude. It ignores whether you have a large mortgage, several young children heading to college, a working spouse, or existing savings that reduce the gap. A family with a $500,000 mortgage and three kids may need far more than 10x, while a childless couple with a paid-off home may need less. Use the multiple to sanity-check a more detailed estimate rather than as the final answer. Industry research from LIMRA consistently finds most Americans are underinsured, so if anything the rule errs low. Model your specific obligations at wealthserene.com/tools/insurance-calculator instead of relying on the multiple alone.

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