How Much Life Insurance Should I Purchase? 
This is the $ 64,000 question , isnt it ? -LRB- And the answer , by the way , is not $ 64,000 of coverage ; nor should you have to pay $ 64,000 in premium . But some people do , and it is well worth it . -RRB- That is a very important consideration . Life insurance premium is money well spent . Each dollar of benefit literally cost pennies . If you get the best rate available , then it costs you a few pennies . If you qualify for a higher premium , that it costs you a few more pennies . In either case , it is an extremely economical way to make sure your heirs and beneficiaries get all the money they need , exactly when they need it . Having said that , I have a very simple philosophy when it comes to determining the face amount . When it comes to taking care of your family , be generous . Losing you will be an incomparable trauma for them . Financial stress and strain would really hurt them . Even having to reduce their standard of living somewhat will cause distress . Give them enough money to live well . It wont take you too much time to calculate just how much money would be needed to accomplish that . When it comes to leaving money to your favorite charity , be prudent . A life insurance benefit could represent a substantial donation to them . They need to have demonstrated a high measure of accountability and responsibility in managing their finances , to qualify for a great gift . Give them enough money to make a difference and take a few good strides towards fulfilling their purpose . And considering spreading your wealth around to various good causes . When it comes to taking care of your business obligations , be exact . Have your accountant crunch the numbers to make sure your partnership agreement is adequately funded . Determine the value of your key people and make sure your company is indemnified against their loss . Account for any and all debt , and make sure there is enough coverage to take care of it . Your business should be able to flourish without you . If you have built it correctly , new leadership should be in place , and the money should be there , for the show to go on . That is successful entrepreneurism . 