- Your Age
- Your Health
- Your Budget
- The Total Amount of Life Insurance You Already Own
- How Much Life Insurance You Qualify to Purchase
Usually, an insurance carrier will allow you to purchase up to 10-20 times your annual income in life insurance.
So, if you earn $50,000 per year, you may be able to purchase up to $1,000,000 or coverage.
However, they will ask on the application for coverage – how much life insurance do you already own?
That’s because, they don’t want you to be Over-Insured.
This may give rise to you possibly committing suicide so your family will get the life insurance payout.
Suicide is excluded if it occurs within 2 years of the time you started your life insurance policy. In some states, the suicide exclusion is one year.
Learn more about how much life insurance one person can have.