Now total these five numbers What is the total of your current life insurance and savings?
The easiest way to think about term insurance is to compare it to renting or leasing a home. I have both term and permanent and nobody understands it better than I do. Be honest with yourself. Can you afford a dollar a day or two, three, four, five , or annually a specific amount? One more note, after you determine the insurance needed, figure out what you can afford to pay in premium to cover that need. If you have a sizable estate, you will want to work with an attorney/ planner to look for ways to lower and pay the probable estate taxes. The benefits might change as the belt tightens on Social Security so be sure to check online. Just remember Social Security pays a dependent child until he/she is 18 (up to age 19 if attending elementary or secondary school full time), and only pays the surviving spouse until your youngest child is 16. Some people may want to deduct what social security would pay to the survivors from the annual income needs. Life insurance might be part of an overall investment plan, but you must first need life insurance. Also, if you hear someone refer to Life Insurance as a good investment, be very careful.When you hear someone say only one or the other is good, it means the person really doesn't understand the whole picture. Which is better depends on what you are trying to accomplish. There are many names for different life insurance policies, but they all come down to term and permanent or a mix of the two. The purpose of life insurance is not to make you feel broke; it should relieve pressure rather than create it. If you can't, buy what you can.
If you can buy all you need with that budgeted amount, great!