6.2.3 How much life insurance you need

Experts generally recommend purchasing life insurance coverage worth 7 to 10 times your annual salary in order to protect your family. For a more precise figure, talk to a financial planner, insurance agent or insurance broker to determine how much and what type of life insurance is best for you.

Use this calculator to get a rough estimate of the amount you will need.

How much life insurance do I need?

Item	Estimated amount
A. Costs at death	$0.00
Funeral expenses	$
Costs to settle estate (including taxes)	$
B. Debts and other expenses	$0.00
Mortgage balance	$
Credit cards	$
Other debts	$
C. Assets	$0.00
Value of home and property	$
Value of other assets	$
Insurance proceeds	$
D. Annual living expenses	$0.00
Household living expenses for surviving spouse and dependents	$
E. Annual income	$0.00
Spouse’s take-home pay	$
Pension and other benefits	$
Cash	$
Income from investments	$
F. Years of need (estimated number of years of support spouse and dependents will need)
Total costs (A + B + [D X F])	$0.00
Total income and assets (C + [E X F])	$0.00
Amount of life insurance coverage needed (difference between total costs and total income)	$0.00

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Date modified:: 2019-03-01