According to multiple of earnings method, the rule of thumb used by many insurance agents is that your insurance coverage should be equal to 5 to 10 times your current income. For example, if you currently earn $70,000 a year, using the multiple of earning method then you need between:

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According to the multiple of earnings method, the rule of thumb suggests that your life insurance coverage should be 5 to 10 times your current income. If your current income is $70,000, multiplying it by 5 gives you $350,000 and multiplying it by 10 gives you $700,000, so the life insurance coverage should be between $350,000 and $700,000. Therefore, option D is the best choice.

According to Multiple of Earnings Method, the Rule of Thumb