If you have a spouse and/or children who depend on you financially and you died unexpectedly, would your assets - combined with other income they would receive - generate enough money for them to maintain their standard of living?

If the answer is no, you might need life insurance to make up the difference. Figuring out how much takes some work.

First, calculate their current and future living expenses, including college education. Then, estimate how much they might receive in income. Include income they could earn from a job, from your existing assets, from any life insurance or pension proceeds from your job, and from Social Security survivors benefits. Next, figure out how much money they would need today to fill this gap.

For a quick estimate, use an insurance calculator such as this one from Smartmoney.com: www.smartmoney.com/insurance/life/index.cfm?story=intro#worksheet