There’s generally a limit to the total amount of life insurance carriers will issue to an individual. With most insurance companies, this limit is 20x your income – some companies may allow a limit of 25x income or 30x income. Even if you do not have your entire coverage with one carrier, these limits will still apply – on every application, the carrier will ask you about existing or pending coverage and want to know the total amounts you have or are looking to place in force.
Keep in mind, there has to be an insurable interest and a need to buy the coverage (e.g. income replacement, estate planning purposes, family protection, etc.).
The average person may not have enough coverage to cover every financial need. Reasons for this may be the willingness/ability to write the check for the premium necessary to cover every need and/or not understanding how much coverage would be necessary to cover all of the financial needs.
A life insurance needs analysis is a great way to determine how much coverage you would need to cover all financial burdens in the event of your death – as many may not want to buy the resulting amount, you can break the figures down and determine which needs are the most important to protect.
Give us a call today at 1-888-972-0024. We will work with you through the entire process to secure coverage from start to finish and assist with your future insurance needs – we do not charge any fees for our services.