How Much Life Insurance Do I Need?
A simple way to size a term life policy around the people who depend on you — using your income, debts, and goals.
A simple starting point
A common rule of thumb is 10 to 15 times your annual income. It’s a quick estimate, not a precise answer — the right number depends on who relies on you and for how long.
The DIME method
For a closer figure, add up Debt (what you owe besides the mortgage), Income (years of support your family would need times your income), Mortgage (the balance to pay it off), and Education (future costs for your kids). The total is a solid target benefit.
Matching the term to the need
Term life lets you choose how long the coverage lasts. Match it to your obligations — a 30-year term for a new mortgage and young kids, or a shorter term to cover your working years. When the obligation ends, the need usually does too.
Don’t forget the non-earner
If one parent stays home, replacing the services they provide (childcare and more) has real cost. It’s common to insure both partners, not just the primary earner.
FAQs
Is 10x income enough?
It’s a reasonable starting estimate, but the DIME method usually gives a more accurate number for your situation.
Term or whole life?
Term covers a set period at a lower cost and fits most families’ core need; whole life is permanent and costs more. Many people start with term.
Do I need a medical exam?
Not always — many applicants, especially younger and healthier ones, qualify for no-exam or simplified-issue policies.
This guide is general information, not legal advice or a coverage promise. Coverage varies by policy, carrier, and state — a licensed agent confirms what applies to you.