Should You Scrimp On Life Insurance?
Determining how much life insurance you need is part science and part art. In general, determine your family’s needs, add in an amount for college or possibly to pay off your mortgage, and then round off to the next major number. For example, if you feel your family will need $600,000, you might decide to round off to $750,000. Then evaluate the cost of a $1 million policy; if the additional cost per month is no more than a dinner out, or the cost of your cup of coffee on the way to work, buying more insurance than you “need” is probably a smart decision.