How much Life Insurance does one need?

[xrac]

You need either:
1) Enough insurance to replace your income during your working years (economic life value)
or
2) Enough insurance to replace the assets that you will consume during your retirement. (Again, economic life value)

Just my own simple definition of maximum coverage.

Good post DHK but you always have good thoughts to share. I think I know this guy from somewhere!

 

[DHK]

You look younger here somehow!

 

[xrac]

You look younger here somehow!

You look the same.

 

[jimsthename]

Good point on thinking of a future life settlement as a possible exit strategy. Could turn out to pay for the insurance. Another idea is that of buying term which could be converted before 75, but sold as a life settlement say at 74 before it worthlessly renews

 

[Hadley]

To determine how much they need you could use a online life insurance needs calculator to get an accurate estimate quickly, or use a life insurance needs analysis form from one of your carriers.

To determine what type of life insurance you could ask them what their goal is for the life insurance policy, and how long they feel they need life insurance.