The amount of life insurance you need depends on your individual circumstances, but Australian financial experts typically recommend coverage between 5-10 times your annual salary for full debt coverage. To calculate your ideal coverage amount, use ASIC's MoneySmart calculator or consider this formula: add your total debts (mortgage, loans, credit cards), funeral costs (typically $10,000-$15,000 in Australia), 3-5 years of income replacement for your family's living expenses, children's education costs until age 18-25, and then subtract your existing assets and savings. For example, if you have a $500,000 mortgage, $50,000 in other debts, earn $100,000 annually, have two young children, and want to provide 5 years of income replacement plus education funds, you might need $1-1.5 million in coverage. Australian families with young children often need more coverage, while those nearing retirement with fewer debts may need less. Review your coverage annually as your financial situation changes, particularly after major life events like having children, buying property, or receiving promotions.