How Do I Determine How Much Life Insurance I Need? 
The question , `` How do I determine how much life insurance do I need '' is one that should be asked by everyone and re-evaluated every year or so . Why ? Because things and circumstances change . There are a number of formulas that are popular with insurance sellers , so the answer you get will depend on who you ask . I would ask you , `` how much do you need for WHAT ? '' In other words : what is your goal for your insurance ? If you have over $ 5.2 million in assets you may want your life insurance to protect your heirs from the tax liability of your estate . If not and your mortgage and credit is all paid off , you may just want your beneficiary to be able to maintain the life style you 've provided for them for the rest of their life . If you still have a mortgage and credit bill you may want to make sure those are all paid in the event of your demise . Or your `` what '' may be a combination of things . That is why you need to work with an agent who will truly look out for your best interests and ask you the right questions . 