How to quickly calculate how much life insurance you need?

How to quickly calculate how much life insurance you need?

  1. Add up the financial obligations you want covered by life insurance. This often includes:
  • The amount of income you want to “replace,” which means multiplying your salary by the number of years you want to replace it.
  • Add the balance of a mortgage.
  • Add other large debts others would have to pay, such as large credit card debt.
  • Add anticipated college expenses for children.
  • Add the cost of a funeral.
  1. Then subtract the existing assets your family could use for these expenses, such as savings, life insurance you already have, and 529 college-savings plans.
  2. The total is your estimated life insurance need.

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