A large part of choosing a life insurance policy is determining how much money your dependents will need. Choosing the face value (the amount your policy pay) depends on:
How much debt you have: All of your debts must be paid off in full, including car loans, mortgages, credit cards, loans, etc.
Income Replacement: One of the biggest factors for life insurance is for income replacement, which will be a major determinant of the size of your policy.
Future Obligations: If you want to pay for your child's college tuition or have your spouse move to Hawaii when you are gone, you will have to estimate the costs of those obligations and add them to the amount of coverage you want.
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