For a young family in their prime working years, life insurance is essential. The unexpected loss of a loved one in the family will have an extremely emotional impact that is difficult to recover from, but it most likely will also result in an extreme financial loss. Life insurance provides the security for a family to be able to survive and maintain their lifestyle. More importantly, it allows the focus to be on emotional and psychological recovery by removing financial stress.
How do you figure out how much life insurance you need? The answer can be technical in some situations and you should speak with a financial planner to get an analysis for your unique situation. But to be better prepared, here is a simple formula that you can use to have an idea for how much insurance you need:
