Most insurance companies say your insured amount should be high enough to pay out at least 6 or 7 times your yearly earnings. This estimation may change according to the number of children you are leaving behind and whether or not your partner is employed, and how easily they could get a job if you passed away.

The amount you have outstanding on your mortgage, car loans, credit cards, and other debts also needs to be taken into consideration. You should have enough to pay off all debts. Morbid or not, you should also include funeral costs into your total.

You know your family better than anyone, insurance companies will tell you a lot of things you should consider insuring, but you are capable of making your own call on what you need and what you dont. If a car, bank, or any other salesman pushes an insurance product always suspect commission is involved and realize t the salesman is probably not looking out for your best interests.