These rules range from 50 percent of the spouse’s life insurance amount all the way up to 100 percent.
There are usually limits on the maximum amount allowed for non-working spouses, with the most common being $1 million.
However, some allow more.
Is there a limit to how much life insurance you can buy?
Rule of Thumb
The general insurance rule for most people is that if you’re 40 or younger, your life can be insured for up to 25 times your current annual income.
What is the highest amount of life insurance?
Whole Life Insurance
Many of the world’s wealthiest people are insured for several million dollars. The current Guinness World Record for the most expensive life insurance policy is $201 million, reportedly held by a Silicon Valley billionaire.
Can a person have multiple life insurance policies?
Yes, you can have multiple policies from the same or different life insurance companies. If you apply for more insurance coverage than your situation indicates you need, the insurance companies will likely ask why.
How much life insurance do I need rule of thumb?
One basic rule of thumb is that the death benefit on your policy should equal seven to 10 times the amount of your annual salary. But, like any rule of thumb, that isn’t always particularly accurate.