How Much Life Insurance Is Right For Me? 
That is a GREAT question ! The `` twin '' question to `` how much is right '' , is : `` Which KIND is right '' . There are more than 10 types of Life Insurance : at least 3 kinds of `` Term '' insurance , and at least 10 kinds of `` Permanent '' insurance . Which kind is right for you depends on your goals and needs . That would include your family situation , your financial situation , and what and who you want to benefit . Then when all that is determined the amount of benefit can be determined . A kind of `` rule of thumb '' - taken completely out of context with all the other variables is about 8 to 10 years worth of your annual income . But in reality each situation is unique to the individual client . That 's why personally I take an Education and Fact Finding approach to advising my clients on which kind and how much insurance to implement . 