There are two methods that can be used to determine how much life insurance coverage you need. One method is based on your human life value. This relates to your income potential over your entire working lifetime. Take for example an individual age 35 that makes $100,000 per year after tax (net). Assuming that they are expecting to work for another 30 years, without considering inflation and assuming they make $100,000 net income for the next 30 years, this individual's family will need $3,000,000 of life insurance coverage to replace the deceased's lost income.

second method that can be used to calculate how much life insurance coverage you need is called the needs based method. There are many factors that contribute to the lifestyle and quality of living that you would want to maintain for your family should something happen to you. The needs based method considers these factors and determines how much money your beneficiaries need to maintain their current standard of living per month. This includes additional factors such as funeral expenses, college education, outstanding loans, fringe benefits, money currently in savings/investments and a projected growth rate; please click here for our life insurance calculator.