How much life insurance do you need?

Everyone's needs are different. Here is how to work out your amount, one question at a time.

Start with the people who depend on you

Life insurance pays money to the beneficiaries you name when you die, so the amount starts with them: who depends on you, for what, and for how long. Your need changes with your age and your responsibilities. Working through the questions below takes a little time, and the answer is yours, not a formula's. If you'd like someone to work through it with you, that's what we do.

Questions to answer first

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Income

How much of your family's income comes from you, and how would your survivors, especially your children, manage without it?

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Others who rely on you

A parent, grandparent, brother or sister you help support counts too.

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Education

Money you want set aside so your children can finish school if you die.

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Final costs and debts

How your family would pay your final expenses, including medical bills before death and burial, and pay off what you owe.

What else to count

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Monthly bills

The bills that keep coming, plus childcare, college and retirement, and support while family members look for work.

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Gifts and taxes

Anyone, or any organization, you want to leave money to, and any estate taxes your family would owe.

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What you do for the family

The value of the work you do for your family counts, not only your paycheck.

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Inflation

How rising prices would change what your family needs in the years ahead.

A rule of thumb, and its limit

The National Association of Insurance Commissioners (NAIC) puts it this way: "Some insurance experts suggest that you purchase five to eight times your current income." It adds that working through questions like the ones above gives a more accurate amount.

How long coverage should last

Once you have an amount, settle how many years you need it for and what premium fits your budget. Term life covers a set period, and NAIC calls it a good choice when you need coverage for a limited time or for a specific obligation such as a mortgage. Decreasing term pays a benefit that shrinks over time, and it is often used for a debt that shrinks too. Some people pair cash value coverage with term coverage for the years they most need to replace income. Make sure you could still afford the premium if it goes up later. To see what a policy would cost, read about term life insurance and request a quote.

Common questions

Is life insurance through work enough?

It depends. Everyone's needs are different, so work through how much your family relies on you, the value of what you do for them, and final costs such as medical bills and burial.

Should a parent who stays home have coverage?

Count the value of the work they do for the family, not only income. NAIC lists "the value of the services you provide" among the things to weigh.

Can I combine policies?

Yes. Term coverage can be paired with cash value coverage for the years you most need to replace income. If you already have a policy, don't cancel it until the new one is in place.

Will my health affect what I can buy?

It can. If your health gets worse, a new policy may be out of reach later. But once yours is in force, the company can't cancel it over a change in your health.

How often should I look at this again?

Every few years with your agent, and when your family grows, so the amount keeps pace with your income and needs.

Does it cost anything to talk with you?

No. Our help is free to you. Agents are paid by the insurance company you choose.

Want help working out your number?

Licensed agents serving clients nationwide. Our help is free to you.

Get a term life quote

Sources (3)

NAIC: Life insurance (consumer guide)
NAIC: Life insurance (insurance topic)
Life insurance (Washington State Office of the Insurance Commissioner)

Last reviewed October 2026. This guide explains how to think about an amount; it is not advice about a specific policy.