My rule of thumb is to buy an amount equal to six times your annual salary. If both spouses work, both should have life insurance to replace their own income. Don't buy insurance on your children. There are two primary types of life insurance. Term life coverage provides a payment only if you die.
Whole life builds a cash value and serves as a savings vehicle.
Buy whole life only if you can afford it and can dedicate yourself to making the premium payments for at least 15 years. If you decide to get term life insurance, the best way to buy is by calling an independent shopping service to get some quotes, either by phone or on the Internet. Don't cancel a whole life policy. Once you've purchased it, it's best to keep it. Avoid buying more than one policy for any person.