Life Insurance FAQ
How much life insurance do I need?
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The short answer
A common rule of thumb is 10-12x your annual income, plus enough to cover your mortgage, debts, and future costs like college. A family with a $100,000 income and a $300,000 mortgage often needs $1-1.5 million in coverage.
The rule of thumb
A widely used starting point is 10-12x your annual income. If you earn $100,000 a year, that suggests $1-1.2 million. Then add your mortgage balance and any other debts you do not want to pass on.
This replacement approach aims to replace your income for the years your family depends on it, while also covering large one-time obligations like a home loan.
Things to factor in
Beyond income replacement, consider your mortgage, car loans and credit cards, future college costs, daily childcare, and any debts a cosigner carries. Life insurance is meant to keep those obligations from becoming a burden on the people you leave behind.
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Your exact number depends on your situation. A free quote takes minutes and compares 30+ carriers, so you can see what your ideal coverage amount would actually cost.
Related questions
Is 10x your salary enough life insurance?
For many families, 10-12x salary plus your mortgage and debts is a solid starting point. Families with young children or large debts often choose more, while those with fewer obligations may need less.
Do I need life insurance if I have no kids?
You may still want coverage to protect a spouse or partner, pay off a shared mortgage, or cover final expenses. Even without dependents, many people carry enough to avoid leaving debt to family.
Should life insurance cover my mortgage?
Many families choose coverage that at least pays off the mortgage, so the surviving family owns the home free and clear. A 20-year term policy often aligns well with a 20-year mortgage.
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