How much life insurance do I need?

A common rule of thumb: 10–12x your annual income in life insurance coverage. A more precise calculation adds up: income replacement for your dependents' needs, outstanding mortgage balance, children's future education costs, and final expenses — then subtract your existing savings and investments. A 35-year-old earning $80,000 with a mortgage and two kids might need $1,000,000 or more in coverage.