Here are the main points that will help you decide on the required amount:
You need to start from your current annual income, which should be multiplied by the number of years during which your family will depend on this income. For example, if you earn $50,000 a year and want to provide for your family for the next 20 years, you will need $1,000,000 just for income replacement.
Add your current debts (consumer loans, mortgage, etc.) as well as estimated costs, such as children's education and other large expenses to this amount.
Subtract your current savings from the amount received. These could be personal savings, pension savings and other insurance policies.
Don't forget to add contingency costs to the total. Such expenses range from $10,000 to $20,000.
Example
Annual Income - $50,000
Required number of years of support - 20 years
Debts and Liabilities - $200,000 (including mortgage)
Children's education - $100,000
Current savings - $50,000
Current life insurance -$100,000
Contingency costs +$15,000
Based on these figures, you will need insurance in the amount of ($50,000*20)+$200,000+$100,000-$50,000-$100,000+$15,000=$1,165,000.
Source: https://www.aol.com/finance/much-life-insurance-132303568.html
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