Guide · 6 min read
How Much Life Insurance Do I Need?
A practical framework for choosing a coverage amount based on obligations, goals, and budget.
Start with what the money is for
Coverage amount follows purpose. Final expenses are usually a defined number. Income replacement depends on how many years of support you want to provide. Debt payoff depends on your balances. Legacy goals are whatever amount you choose to leave behind.
Add obligations, subtract resources
Add funeral and final medical costs, remaining mortgage and other debts, and the income your household would need to replace. Then subtract existing coverage, savings, and other resources already earmarked for those needs.
Match the amount to a sustainable premium
A policy only helps if it stays in force. It is generally better to choose an amount you can comfortably pay for long-term than to buy a larger policy that lapses. A licensed agent can show several coverage amounts side by side so you can see the trade-offs.
Keep reading
This article is general information, not insurance advice for your specific situation. Coverage, pricing, eligibility, and availability vary by state, carrier, product, age, health, and underwriting.