Can You Have Too Much Life Insurance? 
There 's generally a limit to how much life insurance you can have . With most insurance companies , this limit is 20x your income - some companies may view a limit of 25x income or 30x income . Even if you do not have your entire coverage with one carrier , these limits will still apply - on every application , the carrier will ask you about existing or pending coverage and want to know the total amounts you have or are looking to place in force . Keep in mind , there has to be an insurable interest and a need to buy the coverage -LRB- e.g. income replacement , estate planning purposes , family protection , etc. -RRB- . The average person does n't have enough coverage to cover every financial need - generally due to their ability to write the check for the amount needed to cover every need and/or not understanding how much coverage would be necessary to cover all of the financial needs -RRB- . A life insurance needs analysis is a great way to determine how much coverage you would need to cover all financial burdens in the event of your death - as many may not want to buy the resulting amount , you can break the figures down and determine which needs are the most important to protect . Your best bet is to work with an independent life insurance agent/broker than can go through the needs analysis process with you and compare multiple options to find the program that will best serve your needs . 