One common rule of thumb is to multiply your annual income by 10 to 15, especially if you have dependents, to get an estimate for how much coverage you need.  For example, if you make $100,000 per year, you likely need around $1 million in life insurance coverage.  Some people choose to add an extra $100,000 per child to account for each child’s education. So for instance, if you make $100,000 per year and you have two children you’re intending to put through college, you may want closer to $1.2 million in life insurance.