{"id":4485,"date":"2023-01-23T14:27:26","date_gmt":"2023-01-23T22:27:26","guid":{"rendered":"https:\/\/www.vernfonk.com\/blog\/?p=4485"},"modified":"2023-01-23T14:27:29","modified_gmt":"2023-01-23T22:27:29","slug":"whats-a-washingtonians-life-worth","status":"publish","type":"post","link":"https:\/\/www.vernfonk.com\/blog\/life-insurance\/whats-a-washingtonians-life-worth\/","title":{"rendered":"What\u2019s a Washingtonian\u2019s Life Worth?\u00a0"},"content":{"rendered":"\n

\u201cI\u2019m priceless! That\u2019s what my life\u2019s worth.\u201d<\/em> <\/p>\n\n\n\n

That\u2019s your first thought and it\u2019s undoubtedly accurate\u2014except when it comes to your life insurance needs<\/a>. <\/p>\n\n\n\n

What that question is really getting at is the ideal death benefit for your policy, one that will fit all of your needs and provide the right level of financial protection for your loved ones. <\/p>\n\n\n\n

That doesn\u2019t make things any easier. It\u2019s still hard to put a dollar figure on your life, or that of a spouse or life partner, even for insurance purposes alone. There\u2019s no single answer that fits everyone. We all have a range of risks, responsibilities, and budgetary realities that must be considered. <\/p>\n\n\n\n

Nonetheless, here\u2019s some valuable insight that might help you figure out the policy face value, or death benefit, that\u2019s right for you. Let\u2019s start with the easy one first. <\/p>\n\n\n\n

The Easy Answer When Calculating Life Worth in Washington: Rule of Thumb\u00a0<\/h2>\n\n\n\n

If you want to do as little thinking on this subject as possible, here\u2019s the industry rule of thumb: you should carry a policy with a death benefit of somewhere between seven times and 10 times your annual salary. So if you currently earn $50,000 a year, you buy a policy with a face value between about $350,000 and $500,000. <\/p>\n\n\n\n

Told you it was simple. Of course, the rule of thumb leaves out a lot. For instance, do your survivors need as much as half a million dollars in death benefits? Can you afford a policy with such a face value? Will your death benefit needs change over time? <\/p>\n\n\n\n

So\u2026maybe not so simple after all. Let\u2019s look a little deeper.\u00a0<\/p>\n\n\n\n

\"couple<\/figure><\/div>\n\n\n\n

Your Financial Needs Might Change Over Time\u00a0<\/h2>\n\n\n\n

You\u2019ve got two kids in pre-school or younger. You\u2019re the sole breadwinner. If you were to die tomorrow, your family would be at deep financial risk. <\/p>\n\n\n\n

However, if you die in 30 years, your financial picture might be a whole lot different. Maybe both kids will have graduated from college with valuable degrees and now hold high-paying jobs. Maybe your spouse went back to college after the kids left home and currently earns more than you. <\/p>\n\n\n\n

The point is, we may have different financial needs over time. That\u2019s why there are several types of life insurance<\/a> for Washington residents. We\u2019ll take a closer look at two of them. <\/p>\n\n\n\n