What Is The Right Amount Of Life Insurance? 
Complete a life insurance needs analysis - there are general worksheets that you can google for , however , to get the most accurate picture , you should talk with an experienced life insurance broker . The purpose of the insurance is a driving factor in determining how much and how long you need the coverage for -LRB- e.g. paying off a mortgage , income replacement , estate planning , family protection , etc. -RRB- . Someone only looking to pay off debts only `` needs '' the coverage til the debt is paid off . For example , if you have a $ 500,000 mortgage that should be paid off in 30 years , you would only `` need '' the coverage for 30 years , so a term insurance policy may be more suitable to the need than a permanent policy . If you 're looking to provide income for your family in the event of your death , you may want a combination of term and permanent coverage . Once you 've figured out how much coverage you want and how long you need it for , you then need to find the carrier 's program that is going to offer the coverage at the lowest possible cost . This is where the risk classification comes in . This is one of the MOST critical items when buying insurance because it 's what determines the premiums for the coverage you 're applying for . You also want to make sure of the type of coverage you have - full coverage or Accidental Death & Dismemberment -LRB- AD&D -RRB- . With full coverage , the proceeds are paid out whether death occurs by illness or injury . Under an AD&D policy , the policy only pays out if you die by a specified circumstance -LRB- e.g. a car crash -RRB- - if you die by illness and you have an AD&D policy , then the policy will not pay a death benefit . This is important because people see the price of an AD&D policy and it looks very attractive because it 's cheap . That 's because you 're more likely to die by illness than you are of an injury . Work with an experienced independent life insurance agent/broker . Doing the research on your own can be extremely time consuming and you may not always find the information you 're looking for . Independent brokers have an extensive knowledge of the subject matter and know the differences between products that are available in the marketplace . Please feel free to contact me for help or if you have any other questions . Thanks very much . 