What percentage of your salary does the Easy Method suggest for life insurance calculation?

The Easy Method for calculating life insurance needs suggests that individuals should aim for a life insurance coverage amount that is equivalent to a percentage of their salary, typically representing a multiple of their annual income. Specifically, this method recommends that individuals secure coverage amounting to 70% of their salary. This percentage is designed to ensure that dependents can maintain their living standards, cover daily expenses, and potentially pay off debts in the event of the policyholder's untimely death.

This approach is straightforward and user-friendly, making it accessible for those who may feel overwhelmed by more complex calculations. The focus is on providing a fundamental safety net for families and dependents, which is why this 70% figure is often cited as an effective guideline in personal finance planning regarding life insurance.