Try to calculate how much life insurance coverage you need. The main variables to consider when you're buying life insurance are the following:

Total amount of debt/money which needs to be paid off, such as your mortgage, saving for children's college etc.
Total annual income which needs to be provided to your family for them to maintain a similar standard of living
Would you expect your spouse to work in the event of your death?
For your current investments, what expected rate of return do you expect to get
$
$
$
$
$
years
$
$
$
$
years
%
%

$
Life Insurance Needed

Lump Sum Needs at Death:
Final expenses:
$
Outstanding debts:
+
$
+
$
College funding:
+
$
Total lump sum needs:
=
$
Income Needs:
Annual income to be provided:
$
Number of years to provide income:
Estimated inflation rate:
%
After-tax net investment yield:
%
Calculation & Results:
Present value of income needs:
$
Lump sum needs:
+
$
=
Less current investment capital:
-
$
Less existing life insurance:
-
$
Less present value of spouse’s income:
-
$
Your need for additional life insurance:
=
$