How Much Life Insurance do I need?

This is a great question, and I have heard several different versions of the amount one should own. The truth is that life insurance ownership is down, and less people buy it or continue to pay for it during tough economic times. I do believe that if you fail to plan you plan to fail, but at this point if you do not spend much time in this area it fine. You should just buy $500,000 to $1,000,000 in term coverage. (If you have children go $1 mil.) This can vary from person to person, please do not read this and think that I am not doing my due diligence, but the truth is some people are just scanning this information and they like to make quick decisions. If that is you, buy $500k to $1mil in coverage. Please keep in mind that life insurance companies have different requirements on how much life insurance that you can have in force based on your income. (Most carriers cap you out at your annual income.) The federal Government recommends 20x your annual income. (So, if you make $50,000 a year, they recommend that you buy $1 million. $50,000 x 20 = $1,000,000.)
If you would like to plan, I recommend using the online life insurance calculator at www.lifehappens.org. They are a non-profit organization dedicated to help insurance consumers make smart insurance decisions. I really enjoy their website and as an insurance professional, I recommend them to many of my clients. I hope this information helps you decide when you ask yourself, How much life insurance do I need?...