How Much Life Insurance Do I Need?

Prior to obtaining life insurance, it is important to decide how much life insurance coverage you need and what you should consider to determine your need.  Below are some things you should consider:

Protecting your spouse

Think of any current debts you share with your loved ones, such as any student loans, co-signed credit cards, or mortgage payments. You may want to give your spouse a comfortable standard of living after you’re gone and provide money for major expenses like end-of-life medical bills and funeral costs.

Taking care of your children

You may need to factor in the cost of sending your children to school. Tuition costs are higher than ever, and a death benefit can help pay for all or part of the costs if you’re not around to keep paying for your children’s education.  

Keeping your business afloat

If you name your business partner as a beneficiary, you should factor in any outstanding business loans as well as the amount you contribute to grow the business.  You can also obtain collateral loan life insurance coverage for your business loan.  Learn more here.


You may want to set aside for your children until they’re old enough to inherit it.  You can even name institutions and organizations as beneficiaries and leave a gift to your alma mater or your favorite charity.