How Much Life Insurance Do I Need?

A common rule is 10–15 times your annual income, adjusted for debts, your mortgage, future education costs, and existing savings.

By the Home & Dime Editorial Team · Updated 2026

A simple method

Add up income replacement (10–15× income), remaining mortgage, other debts, and future costs like college — then subtract existing savings and coverage.

Factors that change it

• Number of dependents.
• Mortgage balance.
• Existing savings and coverage.

Frequently asked questions

Is 10x income enough?

For many families, 10–15× income is a reasonable starting point.

Should stay-at-home parents have coverage?

Yes — to cover childcare and household costs.

Related guides

• Term vs. whole life insurance

Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.