How to Determine the Amount of Life Insurance You Need
Things You'll Need
- Term Life Insurance
- Whole Life Insurance
- Life Insurance
- Accounting Services
Instructions
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1
Calculate your after-tax income and then count the number of years of life expectancy remaining.
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2
Consult a reputable agent and use an insurance company's computer program to plug in numbers and generate a figure.
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3
Add outstanding debts, such as your mortgage, car loan and credit card debt.
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4
Remember to allow for any medical costs and funeral expenses.
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5
Remember that your family may also benefit from pension and Social Security benefits.
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6
Consider your spouse's ability or desire to earn income and consider extra child care costs.
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7
Remember the special needs of a disabled child or a parent whom you support.
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