Money Matters: How much life insurance do I need?

Here's a tool to help you determine how much coverage you need.

Before buying life insurance, you should assemble personal financial information and review your family's needs. There are a number of factors to consider when determining how much protection you should have. These include:

• Any immediate needs at the time of death, such as final illness expenses, burial costs and estate taxes;
• Funds for a readjustment period, to finance a move or to provide time for family members to find a job; and
• Ongoing financial needs, such as monthly bills and expenses, day-care costs, college tuition or retirement.

Although there is no substitute for a careful evaluation of the amount of coverage needed to meet your needs, most financial experts recommend carrying life insurance coverage equal to five times your gross salary to help protect your family's financial security. Your individual financial situation may require more or less insurance than this suggested amount, to cover personal debts and fund your children's education expenses