While some financial experts recommend 10 to 15 times your gross annual income, this might offer you a better estimate:
Start with your annual lost income multiplied by the number of years it would be necessary for support.
Add any debts like a mortgage, credit cards, school loans or other loans.
Add any future financial obligations you might anticipate (child tuition, funeral expenses, elderly housing, etc.)
Separately, add any current savings accounts, life insurance, assets and your spouse’s earnings.
Subtract the income/obligations (#1, 2 and 3) from your assets (#4).
The negative difference is a potential target amount of coverage you may need.
**Need to understand this better? Give us a call at 866.912.2477. A licensed life insurance agent will guide you through a personal consultation to help you decide which life insurance product could be right for your specific needs.