Many financial advisors recommend that people with dependents have life insurance coverage of three to five times annual gross income. Your life insurance should be able to provide funds for any immediate needs your family may have at the time of death, such as medical expenses, funeral costs and estate taxes or probate, as well as:
Expenses your family may incur during a readjustment period, such as time for a surviving spouse to find a job.
Income your family would need to maintain their standard of living.
Your children’s education and your spouse’s retirement.
Paying off a mortgage or other personal and business debts.
Most people are well-served by term life insurance, which will provide you with the maximum coverage for the lowest cost.
