Co-Founder, Coastal Financial Partners Group, California
The place to start is to determine the actual need amount first. The type - term or permanent - is largely a secondary determination based on budget and if the need is likely to be temporary (term) or for a lifetime (permanent).
Conventional methods center on a capital needs analysis (how much do I need as a lump sum at my death to create an income for my family). Other methods look at Human Life Value and variations on these. The analysis may also address whether the need is indeed a good fit for a temporary or permanent life insurance solution.
Ask a life insurance professional to provide a customized analysis for you and your family.
There are a wide variety of online calculators such as this one:
Owner, Best Health And Car Insurance Rates - Instant Online Quotes, US
The amount of term life insurance you need will vary, depending upon your age, type of work you do, income, number and age of dependents, your budget and other in-force policies you have.
As you can see, there is no easy answer. Although 5-10x salary figures are often thrown out, consulting an experienced full-time broker will yield the best results.
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Conventional methods center on a capital needs analysis (how much do I need as a lump sum at my death to create an income for my family). Other methods look at Human Life Value and variations on these. The analysis may also address whether the need is indeed a good fit for a temporary or permanent life insurance solution.
Ask a life insurance professional to provide a customized analysis for you and your family.
There are a wide variety of online calculators such as this one:
http://www.myconfidentfuture.com/insurance/Calculator_01.aspx
These calculators can help you visualize the problem and better prepare you for a planning discussion with your agent.
As you can see, there is no easy answer. Although 5-10x salary figures are often thrown out, consulting an experienced full-time broker will yield the best results.