To provide your survivors with income to maintain their lifestyles that they would have had if premature death hadn’t occurred.

If you once purchased life insurance, you may need to adjust the appropriate amount. Life insurance needs change as your life changes and time goes on. For example, you need more coverage when your children are young and you have a new home then you do when your mortgage is nearly paid and college days are passing. And remember as your savings increase to the point that there is enough to cover future expensed the need for insurances lessen.

How much should you purchase?

Add up your total debt (all debt) plus children’s remaining or future college cost, plus burial cost, then divide your income by one-half; then multiply that number by your remaining years of work. This should equal the amount of coverage you will need to purchase.

Here are some other reasons to adjust your life insurance coverage.

You remarry (new relationships bring different circumstances, new children and/or estate planning complications).

You divorce or widowed

You acquire a big expense

Your employer stops heavily subsidizing group life

You are unemployed or underemployed