A common rule of thumb is 10-15 times your annual income. However, the right amount depends on your debts, family size, future expenses (college, retirement), and existing coverage.
The right amount of life insurance ensures your family can maintain their lifestyle and meet financial obligations without your income.
Add up the following:
A 35-year-old earning $70,000 with a $300,000 mortgage, two kids, and $50,000 in savings might need: ($70,000 × 15) + $300,000 + $400,000 (college) + $15,000 - $50,000 = $1,715,000.
This may seem like a lot, but term life insurance for this amount is surprisingly affordable — often $50-$80/month for a healthy 35-year-old.
Compare rates from top-rated life insurance carriers.
Term life insurance provides coverage for a set period (10-30 years) at the lowest cost. Whole life provides permanent coverage with cash value accumulation. Most families need term for income replacement and whole life for final expenses. Read more
Final expense insurance is a type of whole life insurance designed to cover end-of-life costs such as funeral expenses, medical bills, and outstanding debts. Policies typically range from $5,000 to $50,000 and do not require a medical exam. Read more
Term life insurance offers more flexibility and typically lower cost, while mortgage protection insurance includes living benefits like disability and critical illness coverage. The best choice depends on whether you need those living benefits. Read more
Compare rates from top-rated life insurance carriers.