It depends on how much you earn, the goals for the family and when you plan to die. Admittedly, the last item is generally hard to know. But, you should start asking yourself these questions, which is not always pleasant because you have to imagine yourself dead:
- What are the financial impacts your loved ones will face when you die?
- If you have kids, how long before they become independent? Are they planning to go to university?
- Does your family have large liabilities such as a mortgage that will still need to be paid if you’re not around?
- What taxes are payable upon your death? (Yes, taxes are owed upon your death!)
- How much will your funeral cost? You may want to consider how grand and lavish a funeral you want to have.
These are only a few considerations - trust me, there’s lots more - but it’s a start.