This episode is brought to you by SmartVester.

Connect with an investing pro near you at Ramsey Solutions.com slash SmartVester.

Kayla is in Milwaukee, Wisconsin. Hi, Kayla. How are you?

Hi, how are you? Better than I deserve. What's up?

So I had a question about term life insurance.

I've been listening about you saying that we need about 10 to 12 times our annual income.

And I just, I guess, from my point of view, it seems like that's very, very high. And maybe I'm

just like missing something in the calculations. And so I'm just hoping to kind of get an idea of, like,

why that number you pick.

That's a great question.

Thank you so much.

I appreciate that, because a whole bunch of other people are probably wondering exactly

the same thing if you are.

I'm so glad you called.

So, to start with, it is not universal. Number one,

everyone does not need life insurance. It's if people are counting on your income to live and you

die, then they're up a creek, right? And so, and as you build wealth through your life and get out of debt through your life

and your net worth increases through your life you progressively need less insurance to the

point that you're self-insured i'm 65 i'm worth millions of dollars and i don't have a dime of life insurance. Okay? My wife will be just fine if I die. Okay? As a matter of fact, she's kind of planning it. Okay, so, but that's because we're out of debt and have built wealth. You follow me? And there's no kids to raise. The kids are all grown and gone and so forth.

Okay. Jade, on the other hand, has two littles. And she and Sam are raising a family right now.

Okay. And so different positions in life. So if you're 20 and you have no spouse and no kids, you don't need much life insurance because no one's

counting on your income. So that's the sidebar. That's the caveat. But then back to your

...