How much life insurance do you need? Life insurance can be used for many things, but one of the primary purposes is to provide a death benefit to loved ones so that they can carry on financially after you are gone. By purchasing life insurance, you are sending a message to family and business associates that you care; you care enough to not only think of today's obligations, but those of tomorrow as well. How much insurance should you purchase to keep your family or business financially sound? The old rule of thumb is that five to seven times your annual gross income is enough life insurance. LIMRA (Life Insurance Marketing and Research Association) recommends that you complete the following questions to determine your human life value. My average yearly earnings =(a) The number of earning years until retirement =(b) Between now and my retirement I will earn (multiply a x b) Who besides me has a vested interest in this potential earning power? For how much would I insure a piece of property (building, apartment, house, etc.) worth this much? For how much do I have this property insured? In addition, it is important to keep in mind the following. How much money will your family need for: Final expenses (e.g. burial costs, illness expenses, estate taxes, etc.)? Readjustment costs (e.g. relocation expenses, time to find a job, day care expenses, etc.)? Ongoing financial obligations (e.g. mortgage, college tuition, utilities, etc.)? Your financial professional can help you further evaluate the amount of coverage you need and your insurance choices.