How much life insurance do I need?
To determine how much life insurance you need, it’s best to look at your surviving family’s immediate, ongoing, and future financial obligations, and compare that with your financial resources. Below are examples of each type of need:
Immediate: funeral costs, medical bills, taxes.
Ongoing: mortgage payments, utilities, food.
Future: college tuition, retirement funds.
Financial resources can include your partner’s income, savings, income-producing assets, and investments. Considering all these obligations and resources, the difference between the two is how much life insurance you need.