How much life insurance do you actually need?
Published May 22, 2026
Coverage that is too small leaves a gap; too large wastes premium. A simple framework gets you close.
One quick approach is income replacement: multiply your annual income by the number of years your family would need support. A more thorough method is DIME: add Debt, Income replacement, Mortgage, and Education costs, then subtract existing savings and coverage.
Revisit the number after major events — a new child, a home purchase, or a raise can all change how much your family would need.
Frequently asked questions
＋ Should I include my mortgage in the amount?
Yes — paying off the mortgage is one of the biggest ways life insurance protects a family's stability, so include the outstanding balance.
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Educational content only — not legal, financial, or insurance advice. Requirements and pricing vary by state.