A coverage amount that is a multiple of your salary may be suggested by financial advice.
However, if you want to get a true idea of how much coverage you need, add up the sources of income that your heirs would need to replace if you died.
This ought to include things like health insurance coverage, contributions to retirement accounts, and other benefits.
You should also add coverage for any costs that your family might have to pay in the event of your death, like the cost of burying you and moving.
However, many of the life insurance companies we looked at offer life insurance calculators or educational resources to help you figure out how much coverage you’ll need if all those calculations seem overwhelming.
For instance, Defensive Life will compute your disaster protection need assuming you give some data about your pay, resources, and obligations.
