Whether or not a $25,000 life insurance policy is enough coverage depends on your individual needs and financial goals. Generally speaking, life insurance is meant to provide financial security to your family and loved ones in the event of your death. The amount of coverage you need can vary depending on how much debt you have, how many dependents you have, and your current income. Ultimately, it is up to you to decide how much coverage you need to ensure that your loved ones are cared for in the event of your death.