Should I use the human life value method or the needs-based approach to size coverage?

The human life value method estimates the present value of all the income you would earn over your remaining working years, essentially insuring your future paychecks. The needs-based approach instead adds up the specific dollars your family would require: final expenses, debt payoff, income replacement for a set period, and college. Needs-based is more common and usually more practical because it ties coverage to real obligations and can be reduced as those obligations shrink. Human life value tends to produce larger numbers and suits high earners who want to fully replace their economic contribution. Most planners recommend starting needs-based, then checking it against a rough human-life-value figure. The Insurance Calculator at wealthserene.com/tools/insurance-calculator walks you through the needs-based version.