How Much Life Insurance Do You Need?

​there are many factors to consider when calculating life insurance marital status dependents earnings of each spouse how much time you have left to work and debts these factors change so it would be wise to consult a trusted financial planner before making any decisions but the main thing to keep in mind is the amount of life insurance must be enough to replace the earnings power of the deceased for the pit depend on them buying life insurance doesn't make sense for everyone if you have no dependents to cover your dads and the cost of dying funeral estate lawyers fees etc then insurance is an unnecessary costs for you if you do have dependents but you have enough assets to provide for them after your death investments trust it cetera then you do not need life insurance however if you have dependents especially if you are the primary provider or significant death that way your assets then you likely will need insurance so that your
dependents or look after if something happens to you let's imagine a simplified example of replacement in a meter in 50 thousand dollars per year and is the sole earner for her husband Bob and child and they have no debts if any passed away the household income would go 20 would they need to find a job and take care of his giant soda replace most of her income and leave her family provided for Amy we need about $750,000 in life insurance that money could be invested at around 5% and roll on down monthly over 30 years so Bob could have had $45,000 per year income and $10,000 for funeral costs and adjustments for inflation and Amy needs approximately 900 to $975,000 have insurance on her self every situation will be different sample Bob could find a job in a couple of years for their child might need more money for college these unique situations require the advice of a registered financial planner who can make sure your needs are accounted for they can calculate an estimate of what coverage do you need and can speculate on foot