Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
How to determine how much life insurance one needs is an exercise that all conscientious insurance agents go through with every client. It is a dereliction of duty not to do so. Of course once the need is determined it still remains up to the client how much to put in place.
In determining the amount of insurance needed, of primary importance is to define what the goals are of the insured. If the main goal for the insurance is to provide for dependents then the requirements for that provision will be the main determining factor for the amount needed. If the main goal for the insurance is to provide additional income in retirement then that requirement will be the determining factor.
So to answer your question depends on who the insurance is for. If it is for you, you should talk with an Insurance Adviser.
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This is a link to help you figure out how much life insurance you need. This is a free calculator and website all about insurance.
Generally, you need to decide what you would like to cover i.e. final expenses only and/or providing income to help your family with future goals.
Expenses like mortgage, credit card debt, loans, etc.
I would also talk with your broker/agent who should help you to figure out what amount makes sense including inflationary increases for the future.
In determining the amount of insurance needed, of primary importance is to define what the goals are of the insured. If the main goal for the insurance is to provide for dependents then the requirements for that provision will be the main determining factor for the amount needed. If the main goal for the insurance is to provide additional income in retirement then that requirement will be the determining factor.
So to answer your question depends on who the insurance is for. If it is for you, you should talk with an Insurance Adviser.