How Much Life Insurance Can I Buy? 
Underwriters have a number of ways of answering this question . It all depends on why you want to buy the policy . If you want to replace your income , then they use a table to determine a multiple of your income . For example , depending on the company , a person in their 20s or 30s may end up with 20 or 30 times their annual income as a face amount limit . If you want to cover a personal debt such as a mortgage , or a business debt such as a bank loan , then you simply have to prove the amount due . If you need to meet the terms of a legal contract , such as a partnership agreement or divorce decree , then you have to document those terms . If you use life insurance to cover an estate tax obligation , then you need a financial statement proving your net worth . And you know what ? You could use a policy for multiple needs , or buy multiple policies with each one covering a different need . 