Life Insurance Based On Income. $240k of the cash value in a whole life insurance policy. This calculator can be used to estimate life insurance needs based on the user’s income.
We’ve talked a lot about using life insurance as an income producing asset. A popular rule of thumb for life insurance says that you should have one or more life insurance policies with a total death benefit equal to roughly 10 times your annual salary. Most insurance companies say a reasonable amount for life insurance is six to ten times the amount of annual salary.