The total amount of life
insurance on any one life should be roughly equivalent to the amount of
financial loss sustained should that person die.
The following financial underwriting guidelines are used by attorneys, financial
planners, insurance companies and insurance brokers to determine the maximum
amount of insurance that can be carried by an individual policyholder.
In some cases, the face amount may exceed the parameters used in determining the
maximum face amount. These cases include: 1) a child who will require
medical care during his majority; 2) a family history that may be passed on to
the insured; 3) a spouse who may need life-long care or 4) parents or siblings
who rely on the insured for financial support.