Life insurance exists to replace what your family loses financially if you're gone. The right amount isn't a round number — it's tied to your actual obligations.
A simple starting point
A common rule of thumb is 10 to 15 times your annual income. That's a starting line; the real number comes from adding up what your family would need to cover.
Add it up with DIME
- Debts — credit cards, car and personal loans
- Income — years of support x your annual income
- Mortgage — the payoff balance
- Education — your kids' future college costs
Total those, then subtract savings and any coverage you already have. What's left is roughly your need.
Term vs. whole life
Term is affordable, high-limit coverage for a set period (often 20–30 years) — ideal for the mortgage-and-kids years. Whole and universal life last a lifetime and build cash value, at a higher cost. Most families start with term.
Don't overbuy
Coverage beyond your obligations is wasted premium. As the mortgage shrinks and the kids grow up, your need usually drops. Because we're independent, we compare carriers to fit the need rather than push one product.
Frequently asked questions
How much life insurance do I need?
Often 10–15x your income as a starting point, refined with the DIME method (debts, income, mortgage, education) minus savings and existing coverage.
Term or whole life?
Term for most families — affordable coverage for your working years. Whole or universal life suits lifelong needs and cash-value goals.
Do I need a medical exam?
Often, but a growing number of carriers offer simplified or no-exam options for qualifying applicants.
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