When it comes to the best type of life insurance for an individual, There is no one-size-fits-all. How much and what type of coverage is needed is based on the individual and his or her:

• Age
• Health
• Income, current financial situation
• Number of dependents

Furthermore, the type of life insurance policy that is most suited for an individual will change over time. Major life events like getting married, getting divorced, having children, or changing your income can all influence your life insurance policy.

Based on these considerations, a basic rule of thumb is to have enough life insurance coverage to provide approximately 10 times your annual household income. For example, if the current household income totals $50,000, consider having a total of $500,000 in life insurance protection.