Art and science are part of answering this question for yourself. One method is to ask yourself “What do I WANT to happen if I die right now?”
Things that could come to mind include:
- Pay off the mortgage
- Provide “X” years of my income to my spouse
- Pay for college
- Provide childcare for “X” years
- Leave funds to my favorite charity
Once a person determines what they actually WANT to happen if they die, it becomes very easy to apply math to the questions and come up with your number.
POINTS TO REMEMBER:
- Good health buys life insurance
- It gets more expensive every day
- Life insurance is a very effective way to provide money to your beneficiaries