Co-Founder, Coastal Financial Partners Group, California
Conventional methods center on a capital needs analysis (how much do I need as a lump sum at my death to create an income for my family). Other methods look at Human Life Value and variations on these. The analysis may also address whether the need is indeed a good fit for a temporary or permanent life insurance solution.
Ask a life insurance professional to provide a customized analysis for you and your family.
There are a wide variety of online calculators such as this one:
Regional Marketing Director, Capital Choice Financial Group,
The proceeds of a life insurance policy paid to your beneficiary should cover D - debt(credit cards, loans, etc.) and death(usually 10k-12k for final expense), I - income replacing (replacing the spouse's monthly income for at least 10yrs), M - mortgage(paying off the mortgage balance), and E - education for the kids(funding a 4-yr college). This formula, the DIME method, will accurately measure the amount of insurance and person needs to carry.
.JPG){kind=avatar}
Ask a life insurance professional to provide a customized analysis for you and your family.
There are a wide variety of online calculators such as this one:
http://www.myconfidentfuture.com/insurance/Calculator_01.aspx
These calculators can help you visualize the problem and better prepare you for a planning discussion with your agent.