How much insurance does the Annuity Method suggest one should purchase to support family?

The Annuity Method for determining the appropriate amount of life insurance focuses on ensuring that the family can maintain their standard of living without depleting the principal amount of the insurance payout. This method suggests purchasing enough insurance so that the payouts can provide a consistent income stream that allows the family to live off the principal indefinitely, without the risk of running out of funds.

This approach typically involves calculating the amount needed to generate a sustainable annual income, often based on the family's current financial needs and a reasonable return on the principal invested. The goal is to ensure that the family is financially secure and that the insurance benefit can support them for as long as necessary, without exhausting the funds.

In contrast, the other choices do not align with the Annuity Method's principles. Doubling annual income or basing insurance on projected growth returns does not provide a guaranteed income stream. Similarly, equating insurance to total debts does not take into consideration the long-term financial support that a family needs beyond just paying off existing obligations.