While most people guess at what they need and round to a nice sounding number, there are more scientific ways to determine the insurance purchase amount. One way, that begins to touch on the familys need to replace income requires that you multiply family income times 5 and then add in the mortgage. If both spouses work, coverage should be divided in proportion to incomes. The possible weakness here is that a younger person with a larger family would need more than this multiple, while an older person with grown children would need less.

Of course there are more scientific ways to determine how much insurance one needs. termcomparison.com can do a full estate analysis upon request. Email or call us toll free 1-888 825 8762 if you have questions.