How Much Life Insurance Coverage Do You Need?
Last updated September 2026
There’s no single right number — the right coverage amount depends on what you’re actually trying to protect.
What to Add Up
- Income replacement — how many years of your income would your dependents need covered?
- Outstanding debt — mortgage, loans, and anything you wouldn’t want left to your family
- Future costs — a child’s education, childcare, or other known future expenses
- Final expenses — funeral and end-of-life costs, which can be substantial on their own
- Existing coverage — any employer group policy or other insurance you already have, subtracted from the total
A Simple Starting Point
A common rule of thumb is 10–15 times your annual income, adjusted up or down for your specific debts and dependents. It’s a starting point for a conversation, not a formula that fits everyone — a single person with no dependents has very different needs than a parent with a mortgage and young kids.
It Changes Over Time
Coverage needs shift with life events — a new mortgage, a new child, a paid-off loan, or a spouse’s income changing. Many people find it worth revisiting their coverage every few years rather than treating one policy as a lifetime decision.
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