How much life insurance do I need?

A simple starting point is the DIME method: total your Debt (all personal debts), Income replacement (10× your annual income), Mortgage balance, and Education costs for children. That sum is your initial coverage estimate. Alternatively, the '10–12× income' rule of thumb works for many families with dependents. Term life insurance (pure death benefit for a fixed period, such as 20 or 30 years) is almost always the recommended starting point for most people — it is far cheaper than whole or universal life for the same death benefit. You only need life insurance if others depend on your income. If you are single with no dependents and no cosigned debts, life insurance may not be necessary.