How Much Coverage Can You Get?
Monthly coverage amounts range from $500 to $10,000 a month (for those who qualify). Coverage is capped by either your monthly income, or a maximum based on your age and policy duration per the two tables below. Additionally, coverage duration is capped by your age as shown in the table below. In some cases, starting coverage can be as high as $1,800,000 ($5,000 per month for 30 years).
Annual coverage (12 monthly payments) is capped at a percentage of your gross income, as follows:
- Ages 20-30 – Capped at 150%
- Ages 31-40 – Capped at 125%
- Ages 41-55 – Capped at 100%
Monthly coverage is also capped by your age and duration of the policy, as follows:
| Coverage Period | Age 20 - 34 | Age 35 - 39 | Age 40 - 43 | Age 44 | Age 45 - 49 | Age 50 | Age 50 - 51 | Age 52 - 55 |
|---|---|---|---|---|---|---|---|---|
| To age 65 | $5,000 | $6,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,099 | |
| 30-year term | $5,000 | |||||||
| 25-year term | $6,000 | $6,000 | ||||||
| 20-year term | $7,000 | $7,000 | $7,000 | $7,000 | ||||
| 15-year term | $9,000 | $9,000 | $9,000 | $9,000 | $8,500 | $7,000 | ||
| 10-year term | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $7,099 | $7,099 | $7,099 |
As an example, consider a 35-yr old making $60,000 per year ($5,000 per month). The monthly payments would be capped at 125% of gross income, or a maximum of $6,250 per month. Additionally, the maximum payments would be capped based on age and policy duration. If a 30-yr policy were purchased, the maximum payment would be $5,000 per month ($1,800,000 of initial coverage over 30 years). If, instead, a 20-yr policy were purchased, the maximum payments could be $7,000 per month based on age and policy duration, although the income cap of $6,250 would then become the cap. In that case, the maximum starting coverage would be $1,500,000 ($6,250 per month for 20 years).
How Do You Decide How Much Coverage to Get?
This policy is designed to provide your family with a monthly payment, so it depends on your family’s needs. If you are purchasing this to protect their ability to stay in your home, we advise covering your entire monthly mortgage payment (which includes principal, interest, taxes and home insurance). If you are looking to replace your family’s lost income, then we advise covering an amount equal to your after-tax monthly income (as life insurance proceeds are typically not taxable income to your family).
