We always like to start with the defining of Insurance: is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.
This first question is Do you need life insurance? If you have dependents to protect and don’t have enough savings, you definitely need insurance.
Naturally the next topic is, How much life insurance do you need?
There are several ways to go about determining how much coverage you need. One simple method is to buy coverage equal to five to 10 times your annual salary, bonuses, etc. Following this rule of thumb, if you make $50,000 annually, you’d buy a policy between $250,000 and $500,000.
Here is a quick simple tool for calculating Life Insurance.