Ask an insurance salesperson how much life and disability insurance you need, and they'll probably tell you, "A lot!"  The problem is, they're usually not very far from the truth.

Most people aren't in a position to be without disability insurance and life insurance.  Even if you have some coverage through an employer sponsored plan, you might still need to purchase additional coverage on your own.  

• Long-term disability insurance:  Disability insurance protects against lost income in the event you become disabled.  Most people in their working years should have at least a minimum amount of long-term disability insurance.

• Life insurance:  Married couples with children, or consisting of only one working spouse, will probably need to purchase life insurance on both spouses.  Married couples consisting of two working spouses with no children may not need life insurance right now.  However, most financial advisors agree that it's a good idea to purchase life insurance while you're sure that you're insurable.

Financial Advisors

The easiest way to find out how much insurance you need is to seek the advice of a financial professional.  If you're already working with someone, hopefully your spouse will feel comfortable with that person as well. 

Otherwise, if you're looking for a financial advisor, how can you find one that you and your spouse can trust? The first step is to ask your friends, family, and business colleagues the name of their financial advisor and whether they're happy with the advice they have received.  If you have a relationship with a CPA or an attorney, ask them for a recommendation as well.  Then, after gathering some names, you and your spouse should meet with at least three different financial advisors to get a sense of how they work.

How Much Life Insurance Do You Need?

If you'd prefer to crunch the numbers yourself, there's lots of great information and useful calculators on-line.  When working through the math, keep in mind that you'll be looking to your life insurance to provide liquidity so your family can:

• Pay off debts , such as mortgages and equity loans, auto loans, student loans, credit cards, and other personal loans.

• Pay for your final expenses , such as funeral expenses, unpaid medical bills and estate taxes.

• Set up an emergency fund

• Set aside money that will be earmarked for your children's educations and the surviving spouse's retirement.

• Provide a nest egg to provide income to the surviving spouse to ensure that your family can maintain its current standard of living.

Why re-invent the wheel?  Instead, take advantage of a few on-line calculators.

How Much Disability Insurance Do You Need?

The questions should really be how much disability insurance can you get?  As an incentive for people to get back to work as soon as possible after becoming disabled, most disability income policies will only cover up to 60 to 70 percent of salary.

Find out more about disability insurance and get a complimentary review of your current disability insurance needs.

What About Long-Term Care Insurance?

Generally, people wait until they are between the age of 50 and 60 before purchasing long-term care insurance.  Most newlyweds, therefore, might be too young to consider purchasing this insurance.

  However, have your parents purchased long-term care insurance yet?  Remember, if your parents need to pay for in home care or nursing home care, how long do you think their savings will last? 

Beneficiaries

Don't forget to review who is the named beneficiary on all of your life insurance policies. Also make sure to revise your beneficiaries upon major changes in your life like marriage or divorce.