The amount of life insurance coverage you need depends on your income, debts, future expenses, and financial goals. A common rule of thumb is to have coverage worth 10–15 times your annual income. Consider factors such as outstanding debts (mortgage, loans), future education costs for children, daily living expenses for your dependents, and any other financial obligations. If you earn $75,000 per year, you might need $750,000 to $1.1 million in coverage. If you have little debt and significant savings, you may need less. If you have young children or a spouse who depends on your income, you may need more. You can also use the DIME method: adding Debt, Income replacement (years needed), Mortgage, and Education costs. Term life insurance is an affordable option for most families, while whole life may be suitable for estate planning. Consulting a financial advisor ensures you choose the right amount for your needs.