How much life insurance should an individual own?

Rough "rules of thumb" suggest an amount of life insurance equal to 6 to 8 times annual earnings.
However, many factors should be taken into account in determining a more precise estimate
of the amount of life insurance needed. Important factors include income sources (and
amounts) other than salary/earnings, whether or not the individual is married and, if so, what is
the spouse's earning capacity, the number of individuals who are financially dependent on the
insured, the amount of death benefits payable from Social Security and from an employersponsored
life insurance, plan, whether any special life insurance needs exist (e.g., mortgage repayment,
education fund, estate planning need), etc.

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