After gaining an understanding of most all the factors that go into calculating how much life insurance coverage you should invest in, you can then start to explore exactly how much insurance do you need for your situation. The majority of determining the coverage you need is based on predicting where you would want your beneficiaries to be financially down the road if you were no longer around to provide for them.
Your beneficiaries relation to you will play a big role in how you want to provide for them. For example, if you and your spouse do not have kids, then determining your coverage will most likely rely on whether or not your spouse earns an income or is dependent on yours. If your spouse does work, then you might only need the amount of coverage required to cover all of your debts and funeral costs, so the burden does not fall on your spouse. He or she can then continue earning a living to support themselves. However, if your spouse does not earn an income and relies on you for financial support, then you need to determine how much coverage you would need to replace what you would have earned for a specified period of time. You will need to determine how long you would want to support them and whether or not after a certain period of time, they will be able to start supporting themselves.
If you and your spouse do have children, then you will need to take into consideration how much you will want to provide to contribute to the entire familys cost of living and to your childrens college education. Again, whether or not your spouse earns an income and the kind of lifestyle you want your family to maintain will play a role in deciding how much of your future income you will need to replace. Also remember that term life insurance allows you to choose the period of time that your family will be covered. So, you can decide whether you will want to provide for your children all the way through their college education, or for some additional time after. Other factors to consider are the house your family lives in and whether or not you will to pay off the mortgage with your coverage.
Like any major purchase, you should compare your options when purchasing life insurance. Different policies will have different pros and cons, and will be influenced by different risk factors. By using an independent term life insurance agency, like SelectQuote, you can compare different life insurance companies and policies to find the best policy to fit your budget and lifestyle.