¿Qué cantidad de seguro de vida necesito?
Deciding how much life insurance you want can feel like a daunting task, but it doesn’t need to be. If you’re feeling overwhelmed, take a deep breath and relax. There are some simple ways to calculate how much life insurance you need — and we’re here to help. Read through this article as we share 5 easy ways to help determine how much life insurance you need.
One way to calculate how much life insurance you need is to multiply your income by 10. So, if you make $50,000 per year, you would need $500,000 of life insurance coverage.
This is a very simple method and is a good starting point. This method doesn’t take into account other important factors like debts and expenses, or how long you would like to replace your income if you were to unexpectedly pass away.
Annual Income of $50,000 × 10 = $500,000 of coverage
If you have children, you’ll want to make sure they are taken care of financially if something happens to you. A good rule of thumb is:
Two children, ages 10 and 15:
Age 10 = $200,000 + Age 15 = $100,000 = $300,000 total
You may want to consider combining this method with the income multiplier method so you can also provide an income for your spouse or family to help raise your children in your absence.
Another simple way to calculate how much life insurance you need is to use the DIME method. DIME stands for Debts, Income, Mortgage, and Education (and Everything Else).
You can’t keep what you can’t afford — and we believe life insurance is something you should keep. Many people significantly overestimate the cost of life insurance.
This is at least a good gauge to help you with your budget. For example, if you are making $60,000 per year, you could begin with a budget of $600 – $1,200 annually for life insurance. If you’re a 40-year-old male, you could buy $900,000 of 10-year term and spend less than $600 per year.
The length of term insurance will change your premium as well. 10-year term is the most affordable coverage and 30-year term lasts the longest period of time, for term insurance.
Sample 10-Year Term Rates
Rates at Preferred Plus (best) underwriting in Colorado — verified January 19, 2023.
| Age | Gender | $100,000 | $250,000 | $500,000 | |
|---|---|---|---|---|---|
| 25 | Female | $7.66 Instant Decision! | $10.01 Instant Decision! | $13.92 Instant Decision! | Quote Now! |
| Male | $9.40 Instant Decision! | $14.36 Instant Decision! | $22.62 Instant Decision! | ||
| 35 | Female | $8.53 Instant Decision! | $12.18 Instant Decision! | $18.27 Instant Decision! | Quote Now! |
| Male | $9.40 Instant Decision! | $14.36 Instant Decision! | $22.62 Instant Decision! | ||
| 45 | Female | $12.09 Instant Decision! | $20.23 Instant Decision! | $34.37 Instant Decision! | Quote Now! |
| Male | $14.62 Instant Decision! | $24.58 Instant Decision! | $43.07 Instant Decision! | ||
| 50 | Female | $17.05 Instant Decision! | $29.15 Instant Decision! | $51.77 Instant Decision! | Quote Now! |
| Male | $20.79 Instant Decision! | $36.76 Instant Decision! | $64.38 Instant Decision! | ||
| 55 | Female | $23.84 Instant Decision! | $42.20 Instant Decision! | $73.52 Instant Decision! | Quote Now! |
| Male | $29.58 Instant Decision! | $53.29 Instant Decision! | $93.53 Instant Decision! | ||
| 60 | Female | $34.02 Instant Decision! | $61.77 Instant Decision! | $107.88 Instant Decision! | Quote Now! |
| Male | $46.11 Instant Decision! | $84.83 Instant Decision! | $148.77 Instant Decision! | ||
| 65 | Female | $51.94 Instant Decision! | $95.48 Instant Decision! | $164.87 Instant Decision! | Quote Now! |
| Male | $70.12 Instant Decision! | $129.85 Instant Decision! | $224.90 Instant Decision! |
The above rates were verified on January 19, 2023 and were run for the Age & Gender shown, in the State of Colorado at Preferred Plus underwriting (best underwriting) on 10-Year Term. These rates are not a valid offer — you will need to complete a quote to view the initial rate for your situation, and the application process will verify your rate.
We have created several solutions for Personal and Business Insurance to help you determine, organize, apply, and buy life insurance in less than 10 minutes — without needing to talk with an agent. Here is a list of our current personal life insurance solutions:
Choose your coverage amount and instantly see your rates. Choose other policy benefits, change benefit amounts, change coverage duration — and see the results instantly on your screen. Then apply and be approved in minutes!
This process takes the guesswork out of your insurance plan. If your family or partner has your income continuing, they should be able to afford their current lifestyle for the number of years you select. We handle all the math and provide a nice, easy-to-understand report. Get your report and apply in 10 minutes or less!
A simple process designed to help you pay off your mortgage balance if the unexpected were to happen. We provide an easy-to-understand report detailing your mortgage replacement plan. Get your report and apply for coverage in less than 10 minutes!
A simple plan that combines the elements listed in this article and allows you to determine your complete need — then subtracts out any existing, easy-to-sell or liquidate assets to offset that need. Get a detailed report and apply for coverage in less than 10 minutes!
Which Type of Insurance Is Right for You?
Everyone has their own needs, wants, and wishes for buying life insurance. Ultimately the best life insurance policy is the one that pays out to your beneficiaries when you need it to. Here are two of our most popular term life insurance products.
Why Work with Quote-Bot?
We simplify the insurance quoting and application process without sacrificing your freedom of choice. You see what an agent would see — there is no hidden information. Then you can make decisions on your own, apply, and receive an instant decision all in less than 10 minutes.
