The decision regarding how much life insurance you need should be made individually. An earlier edition of the LDS Handbook for Families recommends:

Insure the family’s breadwinner first, then others, if desired, as income permits. At a minimum, get enough life insurance to pay for such things as a funeral, taxes, mortgage on the home, car payments, and other debts. The next priority should be to get enough insurance that, supplemented by any government retirement benefits the surviving spouse may be entitled to, there will be sufficient to provide for the family and to make provisions for the children’s education and missions. (“Handbook for Families: Preparing for Emergencies,” Ensign, Dec. 1990, 59)

I like the framework that recommends minimum insurance first, then additional priorities. There are two different methods of determining how much life insurance you need: the earnings multiple approach and the needs approach.