In my opinion there is no magic number or very precise calculator you can use to figure out how much life insurance one needs, but there are several things to consider when planning to purchase life insurance.
First, consider what type of life insurance you want to purchase. It’s an age old debate if term life insurance or whole life insurance is a smarter financial decision. Before you make a decision do some research on both types to see which fits your lifestyle better. Never purchase any insurance without fully understanding what you are buying. It’s easy to get talked into buying something you will later regret.
Second, you need to consider your actual funeral and burial costs. Typical burial and funeral costs are less than $10,000. Many times if you are employed your employer will offer you this amount of life insurance as part of your benefits package. It’s always important for your spouse or loved ones to know about this in case of your death.