How to quickly calculate how much life insurance you need?
Add up the financial obligations you want covered by life insurance. This often includes:
The amount of income you want to “replace,” which means multiplying your salary by the number of years you want to replace it.
Add the balance of a mortgage.
Add other large debts others would have to pay, such as large credit card debt.
Add anticipated college expenses for children.
Add the cost of a funeral.
Then subtract the existing assets your family could use for these expenses, such as savings, life insurance you already have, and 529 college-savings plans.