If you have finally decided to get insurance another important issue is to figure out how much coverage you need and for how long. The easiest way to approach this is to ask yourself: if you’re the primary caregiver to dependents, what will it cost to replace you with a paid provider, and for how long?
The most basic way to calculate your insurance needs is to replace your annual income until you retire. Start with your current annual before-tax salary, and estimate how many years left until retirement. This is typically the formula used by online life insurance calculators. Check it out here!