How much insurance do you need?

When choosing the amount of coverage that's right for you and your family, it's important to think about the amount of money your family would need to maintain its lifestyle if your income were not included. How much would your family need to live comfortably without depleting existing assets and compromising short- and long-term plans?

When answering the questions below, keep in mind how many years it will be until your children are financially independent, as well as when you plan to retire.

Follow these steps to see where you stand:

How much a month would your family need for mortgage or rent?
How much a month would your family need to pay for all other financial obligations - utilities, car payment, credit cards, personal loans or day care?
Estimate the number of years your family will need this income.
What additional expenses would your family incur in the event of your death - funeral expenses, legal fees or unpaid medical expenses?
Estimate the total cost of your children's education.
Estimate the amount of personal savings, life insurance or other assets you already have in place.
Estimate any Social Security benefit you anticipate receiving.