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You might not need as much life insurance coverage as you think. To help figure out what amount of life insurance you actually need, start by calculating the total amount of money that your family would need if they had to live on their own for a specified period of time, such as 5 years. The next step would be to take the amount and divide it by the number of people who will need this income over the course of those five years. This is a great way to get a more accurate picture on how much coverage you actually need.

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