Term Life Insurance
What is the best term life insurance for income replacement?
The best term life insurance for income replacement is a level term policy with a death benefit of 10-12x your annual income and a term that covers your working years. For example, a 35-year-old with a $100,000 income should consider $1,000,000-$1,200,000 of coverage for 30 years.
Key Points
- Coverage amount: 10-12x annual income
- Term: covers your working years (to age 65)
- Level term: death benefit stays constant throughout the term
- $1,000,000 of coverage: as little as $30-40/month for a healthy 35-year-old
- An independent agent can compare term life rates for income replacement