But the real question is how much money your family will need when you're gone. That depends a lot on the family and what stage of life you're at, how many kids you have and what your expenses are monthly.
When you plan to buy a life insurance policy, the factors to consider when deciding on the amount of coverage include your funeral expenses, education loans, any pending mortgages or debts, and the financial support your family would need in your absence.
Five to ten times your annual income is the normally recommended amount suggested. You may want to get professional opinion about this before signing up for anything and many insurance providers and companies offer a personalized analysis of your life insurance needs.
However, you can use a life insurance needs calculator to help you determine an accurate estimate of your life insurance needs. You just answer some basic questions about your current financial situation and instantly receive an estimate of your life insurance needs.