How Much Life Insurance Do I Need?
A simple way to estimate how much life insurance your family needs, from an independent New Jersey agency.
The quick rule of thumb
Many families start with 10 to 12 times their annual income. It's a useful starting point, but your real number depends on your debts, your kids, your savings and what you want the policy to do.
The DIME method
Add up Debt (car loans, credit cards), Income (years your family needs replaced), Mortgage balance and Education costs. Subtract existing savings and coverage. The result is a much more accurate target.
Our free life insurance calculator does this math for you in about a minute.
Don't rely only on work coverage
Employer life insurance is often just 1–2 times salary and usually ends when you leave the job. Most families need a personal policy they own.