How Much Life Insurance You Should Buy. To determine how much term life insurance you need, you need to perform a needs analysis. Here’s a step by step guide to calculate how much insurance you might need.

Total annual needed by your spouse and children in the event of your death.
Number of years you would like to provide this income to your spouse or children.
Your gross income annually.
Your date of birth.
Your spouse’s gross income.
Would you like to pay off any outstanding debt? For example, mortgage, loans, credit cards, college. If so, enter the debt amount.
Burial expenses. That can include funeral, probate, and any other legal matters.
Total amount of your existing life insurance.
Interest rate assumption. This assumes the interest death benefit proceeds are invested.


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