1. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    Determining how much term life insurance is enough can be accomplished with a life insurance calculator, or (easier yet) visiting with a life insurance agent who can guide you. These methods will help you look at the purposes for your coverage: e.g. to pay off your mortgage, put your children through college, etc. Then they show you the amount of life insurance needed to cover those.

    Some people use a very simple guideline of getting a face amount equal to 10 times their annual income, and that is fine. But you may have a disabled child who will need care for his/her lifetime. Or maybe you are an investor in housing and need to protect multiple mortgages. So your need would be beyond what the average person needs.

    Again, having an agent to help can save you lots of headaches. You may need to make some compromises, and a qualified agent can show where you can give and take. How much life insurance you can get is also partly based on your income, so an ethical agent can get you to your goal quickly and within your budget. Please feel free to contact me or others on this website for advice at any time.
    Answered on July 29, 2014
  2. 10968 POINTS
    Tim Wilhoit
    Owner, Your Friend 4 Life, Brentwood TN
    Usually you have purchased enough term life insurance when all of the obligations you wanted to cover have been met. The most common reasons for purchasing term life insurance are to payoff debt, replace income, educate children, buy out a business partner or create an instant estate for loved ones at the most affordable price. If your face amount of term life insurance meets all of your criteria, congratulations, you have enough.
    Answered on July 29, 2014
  3. 410 POINTS
    Drew Ward
    Owner, LifeInsuranceForBusinesses.com, Atlanta, Georgia
    There is no magic way to determining how much insurance you need. A method you can use for determining how much life insurance coverage you need is to do a simple needs analysis:

    1.Income- How much income do you want to give your family and for how long if you died?
    2. Education- Do you want to fund your children's education?
    3. Debt- Do you want to pay of any debt (car loan, mortgage, credit cards) if you died?

    Add those three things together and you will have a good idea of how much you would need.
    Answered on August 20, 2014
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