How much is your life worth? Conduct a “valuation” before buying life insurance
Abstract: People tend to underestimate the amount of insurance they’ll need to provide for the financial security of their families, particularly when one spouse contributes significant nonwage value to the family. To determine the right amount of insurance, one should conduct a “valuation” of each family member’s life. While many will use a “rule of thumb” to make such calculations, this article offers a better method.