Amount

• Purchase enough coverage to make sure your family will be able to maintain its current standard of living after your death. Take into account not only current expenses, but also future costs, such as paying for college.
  
  

Formulas

• The insurance comparison site LifeInsure.com offers a simple calculation for arriving at an estimate of the amount of coverage you need. If you're age 25 or under, buy coverage equal to 25 times your annual income. Up to age 35, buy 20 times your income. Up to 45, buy 15 times your income. Up to age 55, buy 10 times your income.
  
  

Verification

• Insurers might ask you to provide documentation--for example, copies of tax returns--to justify the amount of coverage you want to purchase.
  
  

Non-Working Spouse

• A non-working spouse is usually eligible for the same amount of coverage as her working spouse.
  
  

Term Insurance

• "Term insurance" is the simplest and cheapest option. You pay premiums for a set period, from one year to 30 years, and if you die during that term, the insurer pays the policy value to your beneficiary. "SmartMoney" magazine says term insurance is the best option for most people.
  
  

Whole Life Insurance

• With "whole life insurance," your premiums are invested, and the policy builds a cash value that you can borrow from or even withdraw. Whole life is more expensive, and the investment value usually isn't as good as you can get elsewhere. However, it is the only coverage many people age 65 and older can secure.