Many people have difficulty determining how much insurance coverage the really need. Even after speaking to an Insurance Broker they still find it difficult to understand why they need so much coverage or so less.
In order to figure out what You Really Need, you have to first figure out what your family would need if they lost you and your income.
Most people want to make sure that the dependents they leave behind have to same standard of living as they would have if you were still there.
How do you maintain your standard of living currently, your income. If you died today your dependents would lose your income.
One of the main reasons you buy Life Insurance is to replace your income loss after your passing. If you can replace your income for your dependents then they will continue in the same standard of living that they currently have.