How large a life insurance policy should you purchase? This depends on a few factors with a common thread: how much money your family will need in the event of your death? How much would they need to continue their current lifestyle? How much would they need to cover your final expenses? These are the numbers you need to be aware of when deciding how large a life insurance policy to purchase. You also need to decide how long you want them to benefit from life insurance.
Do the math
One way to obtain this figure is to take your current or projected salary and multiply it by the number of years you want your family to be covered; then, figure out what your expected final expenses might be and add the numbers together. This will give you a rough estimate of how much life insurance to purchase. Other things to consider are education, living expenses, car loans, mortgage, etc. A qualified insurance agent from a reputable insurance company can help you determine just how large a life insurance policy you should have.
