What Kind of Policy Is Best For You?
When you ask, "How much insurance do I need?", you'll also want to think about the type of policy you're considering.
There are two major types of life insurance. The first is term life insurance. It's a great choice for people who have large debts that would need to be repaid if the worst happened.
The other type is whole life insurance, which is a permanent policy with higher premiums.
Whole life insurance policies are often used to supplement retirement income. The funds can be used while you're still alive.
Your Best Option
Answering these questions will help you evaluate your life insurance needs more accurately.
A couple common ways used to calculate a dollar figure estimate for the amount if coverage you need, is to multiply your annual salary by the years left until you retire. The second is to multiply your income by 10 and add $100k per child for college.
There are also life insurance calculators that can be found online that will give you a rough estimate.
The best way to ensure you have the right amount of coverage and the right policy for your specific needs, is to talk with your local insurance agent.