You can easily get a ballpark estimate of your insurance needs by figuring :
(Annual income * .7/ .04 ) + debts - assets + one time expenses = needs
This assumes that 70% of your current income would suffice to meet the needs of your surviving spouse and dependents.
You can make a more elaborate formula by considering other income streams and possible expenses.
Here are a number of calculators and tools that you can use to figure your life insurance needs:
- Forbes: Live Insurance Calculator [DEAD]- A simple calculator for annual income needs over a period
- SmartMoney worksheet
- MSN : Life Insurance Needs Estimator
- Met Life - life Insurance Calculator
- Erie Insurance Group : Life Insurance Calculator -A pretty comprehensive calculator
- Social Security Quick Calculator to estimate survivor benefits from SS for dependent children in the event of your death
- Insurance QA calculator