Life=math problem: + irritation, – sleep, × problems, ÷ happiness.
Sorry Mr. Redhead, but that’s not entirely true when it comes to life insurance. Rather, your annual salary and the number of years left to work before retirement help determine human life value in life insurance. Your spouse did always say work is your life, right? Maybe this time they were almost right. In addition, the amount of life insurance currently in force and pension plan payments would be considered.
If you’re a numbers person, the calculation would be:
[(Age you are expected to retire) – (Current Age)] * Annual Salary.
If you’re 40 years old, earn $70K a year and expect to retire at 65, you would need $1.75 M in life insurance (25 years X $70,000).
Simple as that.
Ready to find out which company and plan is right for you? Check out our Life Insurance page for a list of recommended providers.