How much life insurance coverage is needed can be answered by a licensed insurance advisor who would be asking these important questions when speaking or meeting with you. You may also want to find out how much life insurance coverage is needed by doing your own research.
A needs analysis would address the cost for final expenses, a mortgage, personal loans, emergency funds, maybe a child’s or a grandchild’s education. Perhaps wanting to leave something to your favourite charity. So when it comes to figuring out how much life insurance coverage is required, every individual is unique and needs and must give thought to what would be best for their family and not to leave them with any financial burden.
Perhaps you are a new parent, a newlywed, expecting a child, considering buying a home, (the list goes on!), these are all vital reasons to consider buying life insurance.
To figure out the life insurance needs amount, calculate how much you believe that you (actually your family) will need to cover these expenses. Depending on the life of the policy for instance 10 year, 20 or T100 /permanent plan. And if buying an additional policy now, has your financial situation changed over the years? It may have lessened for instance, with kids out of university, or increased with a new home, or growing family.