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Personal insurance questions
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How much life insurance do you need?
If you’re not sure, you’re not alone. This question has puzzled families for
years, but now there’s a simple way to calculate the amount of protection your family
needs, thanks to the folks at Citibank. They developed a simple formula for getting an
approximate answer to this complicated question. Here’s how it works:
Citibank analyzed the finances of a family of four whose breadwinner has died. They
calculated that the family can maintain its standard of living with an after-tax income of
75 percent of its after-tax income before the breadwinner’s death. But, if the family
winds up with income of less than 60 percent of the pre-death level, its standard of
living will be seriously lowered.
To determine how much insurance would meet either target, the bank devised a simple
"multiples of salary" chart, which assumes the family will also receive Social
Security benefits.
To see approximately how much life insurance you need, fill in the blanks and make the
calculations. Then, contact your independent agent for more information.
Personal estimator
To estimate how much life insurance you need, simply fill in the blanks. Your
independent Harleysville Life Insurance agent will be glad to give you more specific
information.
The multiples-of-salary chart
| Your present gross earnings |
25 years |
35 years |
45 years |
55 years |
|
75% |
60% |
75% |
60% |
75% |
60% |
75% |
60% |
| $23,500 |
6.5 |
4.5 |
8.0 |
5.5 |
8.5 |
6.5 |
7.5 |
5.5 |
| 30,000 |
7.5 |
5.0 |
8.0 |
6.0 |
8.5 |
6.5 |
7.0 |
5.5 |
| 40,000 |
7.5 |
5.0 |
8.0 |
6.0 |
8.0 |
6.0 |
7.0 |
5.5 |
| 65,000 |
7.5 |
5.5 |
7.5 |
6.0 |
7.5 |
6.0 |
6.5 |
5.0 |
|
