1. 11783 POINTS
    Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    There really isn't a right answer for this, there is only your answer for you. There are numerous software programs that you can plug into and it will spit out a number and you can choose to follow that program. Is it correct or exact? Unfortunately the anwer is yes, no or maybe depending on the individual.

    I tend to individualize my approach to "how much life insurance I need?" when thinking about how much coverage to get.

    The first or base level of coverage I consider is simply this "if I didn't wake up tomorrow, how much money would put things at $0.?" This is my starting point or minimum level of coverage I would consider.

    From there, I would start adding based on answers to questions posed like;
    Does my spouse work? Would extra money help in a transition to work?
    How old are my children? Do I want to have something for college set aside for them?
    Who can do for my family what I can do if something breaks and I'm not there? What would that cost?
    If the main person who does the childcare passes, how much would I need to help with that cost?

    You can look at your own situation and bring different questions and costs to the mix too!

    Then much like the purchase of lumber for a project you figure the amount plus 10% extra for just in case.

    This may be why some just say 5X income or 10X income as answers. The assumption is all those questions would be answered and then some.

    The big thing is don't let what ever number you come up with discourage you from getting life insurance. Some is always, always better than none.
    Answered on March 8, 2013
  2. 61667 POINTS
    Steve Savant
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
    When you're considering the amount of life insurance you should have, take the time to add up all your financial liabilities, your future obligations, your charitable intent and generational planning for your children and grandchildren. And don't forget your earning power, i.e. the amount you annual earning from now until retirement.
    Answered on September 13, 2013
  3. 10968 POINTS
    Tim Wilhoit
    Owner, Your Friend 4 Life, Brentwood TN
    The rule of thumb to calculate how much life insurance you should purchase is as follows. Add up all of your debt, any amount you would need to educate your children if any and then add ten times your annual income. This number represents the face amount of life insurance needed. The length of term has to do with the debt and education fund of your children. For example, if you owe 20 years on your mortgage you need 20 level term life for that amount. Do not worry about the extra, I have never seen a widow return proceeds because they felt it was just too much money.
    Answered on January 6, 2015
  4. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    If you own an automobile worth $25,000, you generally purchase enough insurance to give you an automobile of equal value should your vehicle be stolen or destroyed. You have value, human capital. That value is what you represent to those who depend upon you. You love people and they depend upon you. Make sure that they don't suffer more than necessary if they were to lose you.
    Answered on January 13, 2015
  5. 1554 POINTS
    Marcy Tooker
    Life & Health Insurance Agent, The Tooker Agency, Riverhead NY
    If you want a good estimate of how much life insurance you should have, we recommend that you carry at least ten times your annual income in life insurance. This might sound like a large amount of coverage, but it actually is a pretty conservative number when you take all the factors into consideration.
    Answered on April 11, 2015
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