The amount of term insurance you need depends on numerous factors, including your income, your current debts, your financial obligations, your dependent's ages, and whether you want your family to maintain their current lifestyle in the event of your death.
There are a few different methods you can use to calculate how much term life insurance you need, including the "Multiple of Income" method, the "Capital Needs" method, and the "Income Replacement" method.
The "Multiple of Income" method simply takes your annual income and multiplies it by a factor between 5 and 10. So, if you make $50,000 per year, you would need $250,000 to $500,000 in term life insurance.
The "Capital Needs" method is a bit more detailed and takes into account your current debts and financial obligations, as well as your future financial goals. This method is often used by financial planners to determine how much life insurance you need.
The "Income Replacement" method is typically used by people who want to make sure their family can maintain their current lifestyle in the event of their death. This method takes into account your current income, your dependents' ages, and the number of years until your youngest child turns 18.
Whichever method you choose, it's important to make sure you have enough term life insurance to cover your family's needs in the event of your death.