In the past, life insurance agents might recommend a man carry 7 to 10 times his annual income in life insurance.
For instance, if you earn $50,000 per year, your insurance agent might recommend you buy $500,000 of life insurance to protect your family.
Then, if you died, perhaps your family could invest that money and earn income or dividends on the investment to help replace your income.
However, today there are easier, more accurate ways to determine the right amount of life insurance to buy.
Now there are life insurance needs calculators you can use online to help you determine how much life insurance to buy.
You just visit a life insurance calculator online, answers some basic questions about your current financial situation, and you instantly receive an accurate estimate of your life insurance needs based on your own personal situation.
Here's a life insurance calculator you can use to quickly determine how much life insurance you need.