Each family's situation is unique from every other. Because of this, there are no absolute rules for determining how much term life insurance you should purchase.

Buying the right amount of term life insurance involves answering an uncomfortable question: How much money would your dependents need if you were to die prematurely? The answer will likely be more than you think. Major personal finance magazines recommend a life insurance coverage amount from 5 to 10 times your annual earnings. For business life insurance it is best to consult with your accountant. Use our life insurance needs calculator to help you estimate how much life insurance you need.