Co-Founder, Coastal Financial Partners Group, California
There is no set amount. Conventional methods used by life insurance professionals to determine the amount you need focus on "Capital Needs Analysis", "Human Life Value" or methodologies that involve variations on these.
The key thing is to meet with a life insurance professional who can help you start the planning process and ensure that adjustments are made over time. To help prepare for that meeting, you can use one of the many online calculators such as this one:
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
This question has as many answers as it has interested individuals. The payer normally wants to spend as little as possible so determines to have the lowest possible amount, the beneficiary will never turn away money, so wants as much as possible. Other players have their opinion as well. The barometer seems to be "love." Who do you love and want to see continue life without discomfort? Once that is settled, eliminate debt, provide for adequate income and then consider your hopes and dreams. If you want your children to be college educated, you would provide funds for that. If you have charitable interests you might want to provide funds for those interests. If you have a large net worth and it is largely in land, for example, you might want funds available so that the land would not have to b sold to pay death taxes. As I said this is as complicated as the number in interests of the parties involved.
President, The Firm of Steven H. Kobrin, LUTCF, 6-05 Saddle River Rd #103, Fair Lawn, NJ 07410
The key to answering this question is: to what extent does the beneficiary want to hear a loud clock ticking? If you use a formula to replace income for a specific amount of years, then eventually the beneficiary will run out of money. What then? Second marriage? Second job? The clock is ticking loudly to do something to replace the lost benefit. Alternatively, if you use a formula that preserves the benefit, then the beneficiary could simply live off the interest. The money will not run out. No loud ticking.
That is a great question! The amount that you will need depends upon what you want the policy to do. If you just want it to cover your funeral expenses, you will not need anywhere near as much as if you wanted to leave a few years worth of salary for your spouse. Please contact me, and we'll go over this question in a little more detail, so I can direct you on what to look for. Thank you for asking!
Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
The amount of Life Insurance can be very different from person to person. Make an appointment with your Insurance Professional for a proper "Needs Analysis". This interview can be very useful in helping you to identify both your current needs and future goals. Once that is accomplished, you have a wide array of insurance solutions available to you so chose the one, or combination of products that best meets your needs.
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The key thing is to meet with a life insurance professional who can help you start the planning process and ensure that adjustments are made over time. To help prepare for that meeting, you can use one of the many online calculators such as this one:
http://www.myconfidentfuture.com/insurance/Calculator_01.aspx