The right coverage amount depends on who you are protecting and what you have built. Find your family profile below for a starting point, then use the calculator to get a number built around your actual life.
You will hear people say "10 times your income" as a rule of thumb. That is a reasonable starting point. But a single parent with two young kids and a mortgage needs a very different plan than a 55-year-old empty nester who has paid off the house and built savings.
The profiles below give you a realistic range for common situations. They are not a substitute for a real calculation, but they will give you a sense of where to start. Use the free calculator to get a number based on your actual income, debts, and family size.
If no one depends on your income, your coverage need is minimal. The main risks are shared debts a co-signer is on the hook for, and final expenses.
Most single people without dependents start with a small plan to cover those costs, and grow coverage when their situation changes.
If you share a mortgage, car payment, or rely on each other's income, your spouse would feel your loss financially. Even without kids, coverage protects them.
Each spouse should consider individual coverage at least equal to their income times the number of years the surviving spouse would need to stabilize.
This is typically the highest coverage need. Young kids mean years of income replacement, childcare, a mortgage, and education costs all in the mix.
Both parents should have coverage, including stay-at-home parents whose household work would cost $100,000 or more per year to replace.
Single parents need more coverage per dollar of income than two-parent households because there is no second income to catch the fall. Your kids depend on you entirely.
Beyond income replacement, factor in childcare costs, education, and enough to give a guardian the resources to raise your children without financial strain.
Your kids are close to or in college. The income replacement window is shorter but still real. Student loans may be in the picture. The mortgage may be partway paid off.
Coverage in this stage is often about finishing what you started: completing education costs and keeping the surviving spouse on their feet through the transition.
Kids are grown. The mortgage may be nearly paid off. Savings are built up. The need for large income replacement coverage is smaller now.
Coverage at this stage often serves different goals: supplementing a surviving spouse's income, covering final expenses, equalizing an inheritance, or funding estate plans.
This table gives you a rough range based on annual household income and family size. These are starting points, not final answers. Use the free calculator to get a number built around your actual debts, savings, and dependents.
| Annual Income | No Kids | 1 to 2 Kids | 3+ Kids or Single Parent |
|---|---|---|---|
| $40,000 | $280,000 to $400,000 | $400,000 to $600,000 | $480,000 to $700,000 |
| $60,000 | $420,000 to $600,000 | $600,000 to $900,000 | $720,000 to $1,000,000 |
| $80,000 | $560,000 to $800,000 | $800,000 to $1,200,000 | $960,000 to $1,400,000 |
| $100,000 | $700,000 to $1,000,000 | $1,000,000 to $1,500,000 | $1,200,000 to $1,750,000 |
| $120,000+ | $840,000 to $1,200,000 | $1,200,000 to $1,800,000 | $1,440,000+ |
These ranges apply a 7 to 15x income multiplier based on family size and dependency level. They do not account for existing savings, current coverage, or specific debt loads. Use the calculator for a more accurate number.
The table above gives you a range. The calculator gives you a number built around your actual income, debts, and family situation. It takes about 60 seconds and there is no email required to see your result.
From there, if you want to talk through your options, a free 30-minute strategy session is all it takes to get a clear picture of what coverage makes sense and what it would cost.
Thirty minutes. No pressure. Just a clear look at what your family needs and what it would cost to protect it.
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