The most common question we hear is also the one people most often get wrong. Rules of thumb like “10 times your income” are a starting point, but your real number depends on what you want the money to do.
Start with what the money needs to cover
- Income replacement: how many years would your family need your paycheck?
- Debts: mortgage, car loans, credit cards
- Kids' education
- Final expenses, typically $15,000–$25,000
- Legacy: anything you want to leave to family or charity
Add those up, then subtract what's already in place: existing coverage, savings and investments your family could use.
A quick example
A 40-year-old earning $90,000 with a $300,000 mortgage and two kids might want $300,000 for the mortgage, $150,000 for college, $20,000 for final expenses and 10 years of income replacement ($900,000). That's about $1.37 million before subtracting existing coverage.
Term, permanent, or both?
Needs like income replacement and the mortgage usually end at some point, and term insurance is efficient for those. Needs that last forever (final expenses, a legacy, estate liquidity, or a living asset you can borrow from) are where whole life or IUL shine. Many families use a blend.
Get a real number
A free review turns these estimates into real quotes for your age and health.
Quick answer
How much life insurance do most people need?
A common starting point is 10–12 times income, but the right amount depends on debts, dependents, education goals and legacy plans.