There is usually a limit as to how much life insurance a person may own.
Many life insurance companies limit your amount of life insurance to around 20 times your annual income, while some insurance companies may view a limit of 25 times annual income or 30 times annual income as a more reasonable amount.
Even if you do not have your entire amount of life insurance coverage with one life insurance carrier, these maximum limits will still apply.
On every application for life insurance, the insurance carrier will ask you about existing life insurance you own, and any pending life insurance coverage you have recently applied for, and want to know the total amounts of life insurance you have or are looking to place "In Force".
Remember, there needs to be an insurable interest and a need to buy the life insurance coverage - for example, for income replacement, estate planning, family protection, etc.
You can use a life insurance needs calculator to help you determine how much life insurance coverage you need.
Many life insurance companies limit your amount of life insurance to around 20 times your annual income, while some insurance companies may view a limit of 25 times annual income or 30 times annual income as a more reasonable amount.
Even if you do not have your entire amount of life insurance coverage with one life insurance carrier, these maximum limits will still apply.
On every application for life insurance, the insurance carrier will ask you about existing life insurance you own, and any pending life insurance coverage you have recently applied for, and want to know the total amounts of life insurance you have or are looking to place "In Force".
Remember, there needs to be an insurable interest and a need to buy the life insurance coverage - for example, for income replacement, estate planning, family protection, etc.
You can use a life insurance needs calculator to help you determine how much life insurance coverage you need.
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