How much insurance?
One of the important questions to ask yourself when you're about to buy life insurance is how much coverage you need.
The first step is to figure out which expenses you want the policy to cover. The most obvious is providing enough money to pay for your final expenses, including the funeral, any unpaid medical bills and other unexpected costs. Then you can estimate other costs based on what you are spending now, your current net worth and any future financial or life goals your family may have.
You can click here to find an informal worksheet that you can use as a starting point. You might also want to use an online insurance calculator and discuss your situation with a knowledgeable insurance agent or financial consultant.
