3 minute readLife
A workable starting point is ten to twelve times your income, plus mortgage balance, other debts, and future education costs, minus existing savings and coverage. The real question is simpler: how much money would the people who depend on you need to keep their life intact?
What you need to know
The needs-based method
Add income replacement years, debts, final expenses, and education, then subtract liquid assets and existing policies.
Do not forget non-income contributions
Childcare, household management, and caregiving have replacement costs even without a paycheck.
Group coverage is a starting layer
Employer coverage is usually one to two times salary and disappears when the job does.
Common mistakes
- Relying only on employer coverage, which is small and not portable.
- Waiting to buy, when age and health only make pricing worse.
- Insuring the earner and not the parent doing unpaid household work.
- Leaving outdated beneficiaries on the policy.
- Buying a term length that expires before the need does.
When to talk to an agent
Talk to an agent when someone becomes financially dependent on you, when you take on a mortgage, when your health or income changes, or when you want a real number instead of a guess.
Frequently asked
This article is general information, not a policy or a promise of coverage. What your policy pays depends on its specific terms, limits and exclusions. Ask us to review your actual policy before making a decision.