How much life insurance is enough?
Add up what your family would need, subtract what is already in place, and see the gap. No rule of thumb, just your numbers.
- Income replacement$0
- Mortgage and other debts$0
- Education$0
- Final expenses$0
- Total need$0
- Less coverage through work$0
- Less coverage you own$0
- Less available savings$0
- Gap$0
A note on method. Income replacement here is simply income multiplied by years, with no assumption about what the money would earn once invested. That keeps the estimate honest and on the generous side; a full needs analysis would also weigh Social Security survivor benefits, inflation, and a surviving spouse's own income.
The amount is half the question.
How the coverage is structured matters as much as how much there is: term versus permanent, who owns the policy, and whether it sits inside or outside your taxable estate. For some families, permanent coverage also does double duty as a tax-advantaged asset. That is a conversation worth having before you buy anything.
Assumptions and limits. A simplified needs-based estimate using only the figures you enter. Income replacement is income multiplied by years, undiscounted and not adjusted for inflation, investment return, taxes, Social Security survivor benefits, or a surviving spouse's earnings. It is not an underwriting determination, does not consider insurability or premium cost, and is not a recommendation to buy or replace any policy or type of insurance. Group coverage typically ends or must be converted when employment ends. Guarantees in insurance products are based on the claims-paying ability of the issuing insurer. This tool is general education only.