Determining how much life insurance is enough is based on individual financial needs. However, the exact and required life cover should help your family manage their routine expenses and fulfil future family commitments satisfactorily. Also, the life cover should be able to clear off debts and help your family repay all the applicable loans.
The human life value is exact and provides an insight into the required life coverage. Once you have derived the required coverage, you must devise strategies to afford it. For example, you can either revise the values of your expenses and liabilities to reduce the life cover or choose a longer policy term to make the premium cheaper.
While determining the exact life cover, you must be precise while calculating the expenses. You can work on a budget based on your income and expenses. List down different sources of income and expenses. Allocate a specific fund for personal expenses such as grocery, entertainment, medical, etc., and try not to exceed it. In that way, you can set a lifestyle and determine the exact funds required by your family even in your absence. Along with these routine expenses, you must include your money goals and most importantly account for the inflation rate.
Based on these expenditures, you can consider the different traditional and comprehensive life insurance plans to determine the exact and sufficient coverage that can suffice for the required financial needs. For example, you can choose the savings insurance plan for a life cover with guaranteed returns or the ULIP plan for a life cover with market-linked returns.