3.) How much life insurance?

10x your annual expenses. This fund is called a “Death Benefit”.

Why 10x? Because with this principal, your spouse can invest the death benefit in a facility that will earn 10% p.a. and receive interest equivalent to your annual expenses.

This is true. For example your monthly expenses is 20k, that’s 240k in a year x 10, that’s 2.4M – That should be your death coverage. However, at this time, getting a guaranteed 10% interest p.a. is hardly attained, so getting a little higher should do the trick.

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