How do I: Determine how much life insurance?

What you need to know

Every family is different, and will have different needs in the wake of a breadwinner's demise. Here are some questions to help you decide how much coverage to carry:

• How long will your family need financial support? Want to make sure your children are taken care of into adulthood? The younger your children, the more you'll need. If you're the sole breadwinner, take that into consideration. Think it'll take a spouse five years to get a new career off the ground to replace your income? Plan accordingly.
• How much income will you need to replace? How much money does your family need to cover expenses on a yearly basis? Your current salary is a good guide to how much your family needs to get by, but don't forget future expenses like education, retirement and medical expenses.
• Do any of your dependents have chronic health problems, special needs or disabilities? Dependents in need of long-term care will need a corresponding amount of financial support.