Life insurance is considered a critical component for obtaining financial security for a couple of reasons. First, life insurance helps replace income lost by the death of a wage earner. Second, it can help your dependents pay outstanding bills and taxes when you die.

Because there are so many considerations and everyone's situation is unique, answering the question of "how much life insurance do I need" is not always easy. Many people become overwhelmed and put-off buying any life insurance because they don't know how much or what kind they should have.

As you try to decide how much life insurance you need to reach your personal and financial goals, consider the following:

• Ongoing financial needs, such as monthly expenses, college tuition or retirement.
• Funds for the period of adjustment after death that will help family members move or take the time needed to find a job.
• Any immediate needs at the time of death, such as illness expenses, burial costs and estate taxes.

Once you have determined your goals, there are many other factors that will have an impact on the amount of life insurance you need. Here are a few to consider:

• Age and number of family members, blended families, children with special needs
• Existing savings, life insurance, investments, retirement programs or other assets
• Current and expected income, expected inheritance
• Estate tax liability (current and expected)

Making a decision to buy life insurance is taking an important step toward your future financial security. To help you estimate these costs, try the Life Insurance Calculator, located under the calculators section of this web site.* This rough estimate of your life insurance needs can be the starting point for an important discussion with your Financial Representative.