How can you determine how much life insurance you need?

Here is a simple formula but like anything else it can change based on your individual circumstances

1.Multiply your salary X 10

2. Add in the dollar amount of any large future expenses (Ex: College Costs)

3. Add any debt you would like to cover (Ex: mortgage, car loan, home equity loan)

4. Subtract any current life insurance from your final number (Check workplace benefits you may have insurance you did not know about.)

Voila!! Your total need_$____________

 

Source: T. Rowe Price