How much life insurance do I need?
The useful answer is not “ten times your income” and it is not “whatever the quote tool suggests.” Start with the people who would carry the financial load: income that would disappear, debt that would remain, a mortgage you may want cleared, and plans for children or dependents.
NeedTally makes those choices explicit. It can show a quick income-based number and a DIME-style obligation tally. Neither is a personal recommendation. Together they give you a better list of questions.
When this page helps
A marriage, new child, home purchase, job change, or expiring term policy has made the old number feel stale. This page is also useful when two adults disagree about whether the mortgage needs to be paid off.
When it does not
Do not use a generic range to settle a legal beneficiary dispute, business buy-sell agreement, special-needs trust, or tax strategy. Those cases need advice beyond a browser calculator.
How it works
- Decide whose income the household would have to replace.
- Pick a number of replacement years rather than assuming income must be replaced forever.
- List obligations that would remain: debt, mortgage, education, and final expenses.
- Record existing term, group, and permanent coverage separately.
- Read the gap, then challenge the assumptions with the people affected.
Mortgage-first household covers a $340,000 mortgage and six years of income DIME result may exceed a plain income multiple The loan is the central obligation.
Income-first renter with two children, no mortgage, limited savings, twelve years of income plus education Need may be driven by time, not debt
Common traps
Compare the next question
Questions
Is ten times income enough for life insurance?
It can be a quick scale check, but it does not automatically include mortgage payoff, debt, education, existing coverage, or how long income actually needs replacing.
Should life insurance pay off my mortgage?
Some households want that outcome and others do not. Enter the mortgage only when paying it off is part of the plan, then compare the impact on the range.
How long should income replacement last?
There is no universal term. Think about dependent ages, the surviving adult's income, savings, and the time until major obligations shrink. Adjust the calculator rather than treating the default as advice.
Do I subtract savings from life insurance need?
You may consider assets that survivors would realistically use, but do not automatically treat retirement savings or an emergency fund as coverage available for every purpose.
Does this page recommend term or whole life insurance?
No. This page is about the size of a protection need. Product selection is a separate decision.
Related
This is a planning estimate, not insurance, legal, tax, or investment advice, and not a recommendation to buy a policy.