There’s no single magic number. But there’s a clear way to think about it, and a calculator below that does the math for you.
What the Number Really Means
- The Core Question
The goal isn’t to make anyone wealthy. It’s to make sure the mortgage keeps getting paid, groceries are covered, the kids stay in school, and nobody has to make a drastic change in the middle of grieving.
The number is different for every family because every family’s life is different. Your income, your debts, how many people depend on you, and how long they’d need support all shape the answer. The calculator below accounts for these things so you don’t have to piece it together yourself.
The Simple Idea Behind the Math
Every coverage calculation comes down to the same logic, regardless of which formula you use:
Add up everything your family would need without your income: years of living expenses, the mortgage, any debts, childcare, and education if that’s part of your plan.
Then subtract what they already have: savings, investments, your spouse’s income, any existing coverage from work, and other resources.
The gap between those two numbers is the amount your life insurance needs to fill. That’s all there is to it.
A Useful Rule of Thumb
Find Your Number
Coverage Calculator
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- About Your Result
The number you get is a strong estimate, not an exact prescription. If it feels high, that’s okay. You can always start with what you can afford and increase later. Some coverage is always better than none.
What Pushes the Number Up or Down
- You Likely Need More
- You're the sole or primary earner
- You have young children with many years ahead
- You carry a large mortgage or significant debt
- You want to include education funding
- You live in a high cost-of-living area
- With Life Insurance
- Your spouse also earns a solid income
- You have fewer dependents
- Your debts are low or paid off
- You have substantial savings already
- Your children are nearing independence
What Families Like Yours Typically Carry
Young Couple, No Kids
Dual income, shared debts or mortgage
5x to 10x income
Per person
Dual Income, Young Kids
10x to 15x income
Per person
Single Parent
15x to 20x income
Typical range
Stay-at-Home Parent
$250K to $500K+
The work has real economic value. Coverage reflects what it would cost to hire people to do it.
Young Couple, No Kids
Dual income, shared debts or mortgage
5x to 10x income
Per person
Dual Income, Young Kids
10x to 15x income
Per person
When to Revisit Your Number
New child. More dependents, more years of support needed.
New home or larger mortgage. A bigger housing obligation means a bigger gap to fill.
Significant income change. Your family adjusts to your income level. If it goes up, the replacement need goes up too.
Paying off major debt. Less debt means less coverage needed.
Marriage or divorce. Changes who depends on your income and what obligations you carry.
Kids becoming independent. Your biggest coverage need just got smaller.
- About Employer Coverage
If your business carries $300,000 in debt and you have $200,000 in personal guarantees, a $500,000 policy covers both the business obligations and gives your family a buffer. The cost of that policy is a fraction of what your family would face if those debts came due without it.
You Don't Need to Be Perfect About This
A reasonable estimate that you act on is worth far more than a perfect number you never get around to. If the calculator gives you a number that feels out of reach, start with what you can afford. A $500,000 policy is better than no policy. You can always increase later.
People consistently overestimate what life insurance costs. If you’ve been putting this off because you assume you can’t afford the coverage you need, the next step is to check the actual price. You might be surprised.
See What Your Coverage Would Cost
Now that you know how much you need, compare options from top-rated carriers side by side in about 2 minutes.
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