Everybody needs a different amount of life insurance based on their individual situation. But it basically comes down to how much money your loved ones would need to remain on firm financial ground if your earnings were no longer in the picture.
To get started, it helps to consider a few questions like:
- Who do I want to protect? Common answers include a spouse or partner and children, but your list may also include siblings, aging parents and more.
- How long would they need financial support? Consider the ages of everyone who depends on your earnings.
- Is anyone disabled or have other special needs? It’s important to remember that some people may need lifelong support.
- How much debt do I have? You’ll want more coverage if you have a mortgage, auto payments, credit card debt and other outstanding loans
To calculate how much life insurance you will need, check out this calculator!