Updated: Oct 15, 2020
Please note: I am NOT an accountant, CPA, or attorney. Please seek the advice of a qualified professional for accounting, tax, or legal advice and services. And, as always, if there's something not correct in my writing, please let me know - with cited information - and I'm happy to learn and amend this article.
When purchasing life insurance for personal planning, the equation to determine the maximum amount you can apply for, is often very simple:
Current Income x maximum allowed age multiplier. See the example table below.
If you're 45 years old, take your income and multiply by 20 for the maximum amount of coverage for underwriting.