Worksheet 3 will help you figure out how much additional coverage you
need, if any.
Start by estimating the income your spouse and/or dependents will continue
to receive after your death.
Then, estimate their annual expenses.
Any shortfall between the expenses and expected income is the amount
of income your insurance proceeds will need to replace.
One method financial planners use to calculate the amount of life insurance
coverage needed is to figure $100,000 of coverage for each $5,000 of
additional income needed.