There are two ways to approach this. An "income replacement" strategy provides your family with a payout that's sufficient to support them for 15 to 20 years, through a combination of principal and interest. An appropriate amount of coverage is roughly 10 to 12 times your current annual income.  The alternative is "expense calculation," which correlates the size of the policy with your present and future financial obligations -- such as a mortgage or college tuition (which currently comes to around $175,000 on average for a private four-year institution). Both factors can help you when determining the size of your policy. Nationwide provides a useful online worksheet for a more in-depth look.