How Much Life Insurance Do You Need?
A simple framework — income replacement, debts, and future costs minus what you already have.
The fastest way to size life cover is to add up what your household would need if your income stopped, then subtract what you already have. A common rule of thumb is 10–15× your annual income, but a needs-based estimate is more honest.
Add up the obligations
Start with income replacement — the salary your dependents rely on, multiplied by the number of years until they'd be self-sufficient. Add outstanding debts, the mortgage balance, and future costs like education and final expenses.
Subtract what you have
Deduct existing savings, investments, and any cover you already hold through work. The remainder is a reasonable target face value. Our life insurance calculator does this math for you in seconds.
Term usually does the job
For most families, level term insurance covers the years of greatest need at the lowest cost. Revisit the number after major life changes — a new child, a home purchase, or a big change in income.
