The income method, used to calculate your life insurance coverage, multiplies your current annual income by

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The income method typically uses a multiple of your current annual income, such as 10, to determine your life insurance coverage amount. This is to ensure that your loved ones would have enough financial support to maintain their standard of living in the event of your unexpected death. Other factors such as expenses and number of dependants may also be taken into consideration, but the income multiple is usually the primary calculation used.

The Income Method, Used to Calculate Your Life Insurance Coverage