Help protect your family’s future. Enter your zip code to get your free quote today!

Get Your Free Quote

How Much Life Insurance Do I Need?

Knowing how much life insurance you do need is dependent on a number of factors such as your lifestyle, health and income. People with dependents may especially want to consider the benefits of life insurance. But having a life insurance policy can also be important for single people and business owners to help their beneficiaries pay for everything from funeral costs, mortgages, personal debts and education expenses.

65 life insurance

How Much Is a Life Insurance Policy?

The price you pay on your monthly premium for life insurance is mostly determined by your health, your age, your insurance provider and your habits (smoking tobacco can cost you higher premiums).

One important step in understanding how much life insurance insurance you need is getting a grasp on how much you can afford to pay per month in premiums.

Before speaking with an agent about which types of life insurance to buy or how much coverage you should get, it’s important to answer the following questions:

  1. How much do you owe in debts?
  2. Do you have any outstanding medical bills?
  3. How many dependents do you have?
  4. What type of life insurance should you get?
  5. What is your net salary?
  6. How much do you spend each month?
  7. How much is your mortgage?
  8. Do you owe estate taxes?
  9. What are your assets?
  10. How much is in your savings?
  11. How much will your family or business need if you are not around?
  12. Have you considered the cost of your funeral?
  13. Do you want to donate to a charity upon your passing?

From there, you’ll want to take your total amount of debts and subtract your assets (e.g., home, cars, boats, property, savings, 401k). Don’t forget to figure in future costs such as a child's education, medical bills and other estimated burdens. This number will be a rough estimate of the amount of life insurance you should buy. 

How to Calculate How Much Life Insurance You Need

For a simpler equation on how much life insurance you should buy, many experts say you should purchase enough coverage to match between 5-7 years of your present salary. For those with children, you may want to increase that number to 10 years of your salary.

It’s important to talk to your loved ones about what they would do if you were to pass away. The more you plan together, the better prepared your loved ones will be.


*Applications for insurance may be subject to acceptance by insurer. Rates and coverage amounts will depend upon the carrier selected.


Help protect your family’s future. Enter your zip code to get your free quote today!

Get Your Free Quote

Related Information

Calculate How Much Life Insurance You Need

Use this step-by-step guide to calculate how much life insurance your family will need to sustain their lifestyle after you die.

Read More

Meeting Your Life Insurance Needs

Read some tips on how to determine what amount of life insurance is right for you.

Read More

How Much Does It Cost to Get Life Insurance?

How much you pay for life insurance depends on your age, health, the type of insurance policy you buy and how much coverage you want.

Read More

Life Insurance Overview

How much do you know about your life insurance coverage? Test your knowledge with this life insurance overview.

Read More

Think You Need Life Insurance? Use This Checklist.

Do you need life insurance? If you’re considering buying a policy, you should first read this primer on life insurance policies.

Read More

The Minimum Age for Life Insurance and Other Considerations

There's no real minimum age for life insurance. Shop around to find the right life insurance policy for your needs.

Read More

Life Insurance Explained

Life insurance can be a crucial form of financial protection for your loved ones. Here's what to consider if you’re shopping for a life insurance company.

Read More

How Does Life Insurance Work?

This primer will help you learn how life insurance works and the different life insurance options you have to choose from.

Read More

How Much Does a Life Insurance Policy Payout After Death?

If you have a life insurance policy, a payout of the death benefit is preceded by a claim providing a death certificate.

Read More