The purpose of life insurance is to allow your family be able to maintain same level of current lifestyle financially in the event of death. To decide how much is enough, you should consider a few areas:
1. Final expense plus your current income times years left to retire
2. Final expense plus your total financial liability (such as mortgage) plus the amount needed for keeping current living expense
The cheap way to get life insurance is to combine term and permanent, because you don't need big amount all the time. For example, you might want 1 m for 25 years to cover mortgage, kids' education, and replace income, and then 200,000 only for permanent, to cover final expense and estate to leave behind.
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