One basic general rule is that the death benefit on your policy need to equate to seven to 10 times the amount of your annual salary. However, like Helpful resources any general rule, that isn't constantly particularly precise. Another method of taking a look at it: You require to determine what income you want to offer your spouse or other recipients when you pass away (what is group term life insurance).
The resulting number is the shortfall you'll want to fill with life insurance. More help This interactive calculator can help you arrive at a number. Let's say the shortfall is $25,000 a year. A basic insurance concept says to purchase a life insurance coverage policy that is about 10 times that amount, or $250,000 in this example.