Whether $500,000 in life insurance is sufficient or not will depend on the policyholder's individual situation. Ideally, life insurance should provide a death benefit that's large enough to cover final expenses, repay debt, pay off a mortgage, cover a child's education, and replace your income for an appropriate number of years. In some cases, $500,000 will be the right amount to do that. In other circumstances, it may be too much or too little.