How Much Life Insurance Do You Actually Need?

There is no single coverage amount that fits every family. A useful starting point is a list of the financial responsibilities you would want help covering.

Add up the needs

Think about both immediate expenses and the support your household may need over time:

• Mortgage payments and other debts.
• Income your household relies on.
• Childcare, education, and other family commitments.
• Final expenses and a short-term financial cushion.

Account for what is already available

Consider existing life insurance and assets that would realistically be available to your family. Be careful about treating every asset as ready cash or assuming employer-provided insurance will follow you to a new job.

The goal is a clear picture of the gap your family could face, rather than a precise-looking number built on uncertain assumptions.

Revisit the estimate as life changes

A new child, a home purchase, a change in income, or a paid-off loan can change the calculation. Once you have an estimate, compare term and whole life in the context of your budget and time horizon.

Talk through your life insurance options if you would like help organizing those questions.