Direct answer
It depends on your total liquid savings and existing emergency fund, as most policies only cover 60% to 70% of your gross income. You need to calculate the gap between that coverage amount and your essential monthly recurring debt to determine the necessary supplement.
Standard personal financial planning guidelines regarding income replacement ratios and emergency fund requirements. For additional information about setting aside savings for emergencies, see the Consumer Financial Protection Bureau‘s guidance on building an emergency fund.
What this means for you
It depends on your total liquid savings and existing emergency fund, as most policies only cover 60% to 70% of your gross income. You need to calculate the gap between that coverage amount and your essential monthly recurring debt to determine the necessary supplement.
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This page is informational and not a coverage guarantee or quote.
