The answer isn't really how much life insurance you need. It's how much money your family will need after you're gone. Ask yourself:
Life insurance proceeds can help pay immediate expenses and outstanding debts, and can help cover future financial obligations. To estimate how much you need can seem overwhelming. While a general rule is to have an amount seven to 10 times your annual income, completing a needs analysis can give you a more accurate picture.
Here's how it works:
The difference between your obligations and resources indicates how much life insurance you need, as displayed in the diagram below.
|Current and future financial obligations||Existing resources
Including survivors' earnings, savings and investments and life insurance that you already own.
|Life insurance needed|
For some extra help, check out our life insurance needs calculator. It will provide you with an estimate of your insurance needs in a matter of minutes.
Every situation is different, so contact an Amica Life representative at 800-234-5433 for professional assistance in determining your particular needs.