How Much Life Insurance Do You Actually Need?

According to LIMRA, 40% of American families with life insurance say they don't have enough coverage. For families without any coverage at all, the number is even more alarming — roughly 1 in 4 Americans have no life insurance whatsoever.

The most common rule of thumb is the 10x income rule — your coverage should equal at least 10 times your annual household income. Many financial advisors recommend 12x for families with young children or large mortgages. But a blanket multiplier doesn't account for your specific situation: your mortgage balance, the number of people who depend on your income, or coverage you already have through your employer.

Speaking of employer coverage: most employer plans cover just 1-2x your salary. If you earn $75,000, that's $75,000-$150,000 in coverage — a fraction of what your family would actually need to cover your mortgage and maintain their standard of living.

This calculator takes your actual numbers — mortgage payment, income, dependents, and existing coverage — and shows you the specific dollar gap between what you have and what your family needs. It takes less than 2 minutes.