How Much Life Insurance Should a Family Consider?
The right amount isn’t a rule of thumb — it’s the answer to what your family would actually need if your income disappeared.
The short answer
There’s no universal number. The right amount of life insurance is the amount that would let the people who depend on you maintain the life they have today if your income disappeared. That’s a question about your family’s specific responsibilities, not a generic multiple of your salary.
Start with income replacement
How many years of income would your family need to maintain their standard of living? Multiplying your annual income by the number of years you want to protect is a starting point — not a final answer.
Add the obligations that don’t disappear
A mortgage, shared debts, co-signed loans, and future education costs don’t go away. Coverage that addresses these obligations helps preserve routines, plans, and opportunities during an otherwise destabilizing time.
Subtract what’s already in place
Savings, existing coverage, and other resources can offset some of the need. The gap between what your family would need and what’s already there is the most useful number to work toward.