Life insurance allows surviving loved ones to pay final expenses, outstanding debt, and future obligations or to maintain a standard of living. Pondering your post-death wishes will help you zero in on the right life insurance limit for your unique situation.

Some individuals choose a life insurance limit based on annual income multiplied by five, ten, or more. Project college expenses for kids and increase the figure accordingly.

Other folks choose a figure in line with lifetime income. Predict your total earnings based on a normal life expectancy.

A third approach considers survivors' current and future financial needs. Calculate expenditures (normal living costs, housing, child-rearing and education expenses, credit card and loan debt, transportation, taxes, etc.). Subtract assets that offset these costs (bank accounts, investments, retirement plans, insurance payouts, income-producing property, etc.). Buy life insurance in line with the final figure.

There are many life insurance products to consider. Term life is less expensive but ends without cash value after a specific number of years. Permanent life continues until you pass (if premiums are paid). Whole, universal, variable, and variable-universal are different types of permanent life products with distinct features. Explore the pros and cons of each option with a life insurance agent. Check financial stability, licensing status, and complaint record before committing to a policy.