How much Life Insurance do I need?
DEBT: Add up all of your debt balances: $250,000.
INCOME NEED: I need $60,000 to live on annually.
Use 3% return to calculate income - $2,000,000 (X) 3% = $60,000
AMOUNT OF INSURANCE: In this case $2,250,000
*(Remember, this does not consider college, inflation or taxes)