How much Life Insurance do you really need?

Remember that when purchasing life insurance it's all about how much capital your family will need when you die.

How much will be needed when you die to meet immediate obligations?  This amount is the accumulation of all final expenses: medical bills, funeral and estate-settling costs, outstanding debts, mortgage balance and college costs.

How much future income will be needed in order to sustain the household? This is the summation of the “present value” of cash-flow streams your loved ones will need after your death.
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The Value of All You Do If something were to suddenly happen to you, your family might have to hire others to take on some of your daily activities. You'd be surprised at how all you do adds up! To see just how much, estimate the number of hours per week that you spend on each of the activities below. The final cost will then be part of the calculation of how much life insurance you need. Even if you earn no income, insurers generally allow you to get as much life insurance as your working spouse has. To get a full picture of your insurance needs, be sure to look at your spouse's life insurance coverage, too. Life Insurance Needs Estimator How much life insurance is enough? Get a quick estimate. This calculator provides a quick and simple method to estimate the amount of additional life insurance you need.