⚡ How much life insurance do I need?
☂️ Income Replacement
If you have no dependents and enough money to cover your final expenses, you generally do not need life insurance. The Insurance Information Institute notes that dependents are the trigger for coverage. This calculator helps you size your exact need so your family is fully protected.
Needs-based sizing beats simple salary multiples because a basic 20x pay rule ignores inflation and hidden income. Replacing employer-paid health premiums and 401(k) matches can cost $2,000/month or more.
🎓 Debts & Education
Your life insurance should clear out the mortgage and any other outstanding debts so your family inherits a paid-off home.
You also need to fund future education. For a typical public four-year degree path, expect to budget roughly $100,000 per child. The Insurance Information Institute recommends factoring these specific goals into your total coverage target.
🛡️ Assets & Existing Cover
Term life insurance is the default vehicle for most families because it provides massive coverage for a low cost during the years you need it most. We automatically include a $15,000 buffer for funeral and estate wind-up costs in your total.
This model simplifies away inflation, a surviving partner's future earnings, and Social Security survivors' benefits. It also ignores employer coverage, which disappears the moment you change jobs.
🔗 See Also
For further related reading, check out:
Calculator updated by heyfinfam (v26.7.0) · View history
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