The question of how much life insurance you need can stir up an emotional as well as economic bees’ nest. We've heard sentiments ranging from, “I want my family to have everything in abundance,” to “I don’t want my spouse to get rich from my death.”
Whatever your thoughts may be about providing for your surviving family, we recommend you start with having enough life insurance to cover basic expenses.
This requires some number crunching on your part. You’ll want your family to be able to:
At the least, life insurance allows a surviving family to “buy time.” It is a gift that affords them the time to mourn and deal with their loss as they create a “new normal.” This is especially important if there are children involved.