When 'Rules of Thumb' for Life Insurance Aren't Appropriate

Ughhhh. Life insurance isn't exactly a fun topic to talk about, is it? Yet, it is essential coverage for many families who want to protect the future earnings of one or both spouses.

There used to be a rule of thumb among insurance agents that your death benefit should be equal to a multiple of seven to 10 times your annual pre-tax income. Here are a three scenarios where this rule of thumb is not helpful:

1. Stay-At-Home Parents

If you're a stay-at-home parent, you're not receiving financial compensation for hard work at home. Following the rule of thumb, you should have no life insurance coverage, because your financial earnings are zero. However, your spouse would need to secure