Can You Have Too Much Life Insurance? 
Yes , there is a formula that life insurance underwriters use to calculate the amount of life insurance you may purchase . Different insurance carriers use different but similar formulas . Depending on age it could be as high as 35 times annual income or as low as 20 times annual income . The underwriters will also consider your assets as well . Remember there must be an insurable interest in order to purchase life insurance . This means a person , loan institution , loved one , or business partner would suffer a financial loss upon your death . This can be more important than the face amount . 