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How do I know what amount of life insurance is right for me?
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CalcXML has a pretty good caluclator here.
It looks like the spreadsheet's primary consideration is your expected individual future earnings. It adds in large future costs, such as college and morgage payoff, then subtracts existing life insurance and investment assets.
It is just a guide, but for a young man who can swing it, I would always recommend more death benefit than you think your beneficiaries will need.
If you're fairly young, check out prices on a 20 or 30 year level term insurance. -
The broad rule of thumb is 10 times income. I would use that as a starting point and then adjust up or down based on your circumstances. Sit down and figure out what you want life insurance to cover upon your death. Would you be leaving debt behind that would need to be paid? Would you want your spouse to be able to pay off the mortgage? Do you want to fund your kids' college education? Does your spouse work and earn enough to support him/herself if you were to die or do you need to leave money to supplement his/her income?Steve
* Despite the high cost of living, it remains very popular.
* Why should I pay for my daughter's education when she already knows everything?
* There are no shortcuts to anywhere worth going.Comment
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