If you kids and wife depend on your income right now, you really need term life insurance. It helps protect your family by replacing your income, which makes term life one of the most important parts of your financial plan.

Its not complicated to find out how much life insurance to purchase however it does require some though about what you want in your future. How much consumer debt do you have? What is your annual income? How many children do you have?

As a quick rule of thumb, 10 times your annual income is a good starting point.

Whole life insurance is grossly over priced and not recommended as a general rule of thumb. It often costs hundreds of dollars more a month and includes a “savings” plan with a terrible return. Instead you can pay a fraction for term life insurance and save or invest what you would have paid for whole life insurance. There are better ways to spend your money.

• Protect your family.
• Cover children’s expenses.
• Replace the spouse’s income.
• Pay off debts.
• Buy a business pattern’s shares.
• Pay off estate taxes.