Life Insurance 101
How much life insurance do I need?
The right amount depends on your circumstances, but the math is more straightforward than most people expect. Here's a simple way to get there.
1. Estimate your expenses
Add up what your family would face: immediate costs (funeral, medical bills, estate settlement), ongoing costs (mortgage, debts, living expenses), and future costs (children's education, a spouse's retirement).
2. Account for existing resources
Subtract what your family already has — a spouse's income, existing policies, savings and investments, and other assets.
3. Calculate the gap
Total expenses minus existing resources equals the coverage you should aim for.
A useful rule of thumb
As a rough guide, many advisors suggest 10 to 15 times your annual income. So someone earning $50,000 might look at $500,000 to $750,000 — though significant debts or several dependents can push that higher.
The bottom line
This method makes sure you choose a policy that genuinely protects your family — not a number pulled from thin air. It's exactly the calculation we walk through together in a needs analysis.
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