A general rule of thumb is that life insurance coverage should replace 6 to 10 times your gross annual salary. However, in addition to income replacement, there are a number of factors to consider when deciding the right amount of coverage for your circumstances. It’s important to also take stock of your current and future financial responsibilities, including your mortgage balance and any additional debts you may owe (e.g., credit cards, car loans, student loans, etc.), your children’s education expenses, and your family’s day-to-day living expenses. These are all financial obligations that would fall to your loved ones in your absence – providing adequate coverage helps ensure they have resources for these after you’re gone.