Next, take a hard look at your family’s liquid assets.
Liquid assets are assets that can be redeemed quickly and for a predictable price. Generally, houses and cars are not considered liquid assets since they may require time to sell and because selling them may adjust your family’s standard of living.
Needs and obligations—minus liquid assets—can help you arrive at a better idea about the amount of life insurance coverage you may need.
Keep in mind that this is just a quick exercise. While it’s a good start at understanding your insurance needs, a more detailed review may be necessary to better assess your situation.