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How much life insurance does my family need?
$1,
This week: compare this figure with the death benefit on any policy you already have.
Calculate recommended life insurance coverage and explore policy options
Written by Elizabeth Stein
A 30-year-old earning $75,000, with $50,000 in other debt and a $200,000 mortgage, two kids and a want to fund college for both, and 10 years of income to replace: income replacement is $750,000, debt payoff is $250,000, education is $200,000 at $100,000 per dependent, and final expenses is $25,000. That totals $1,225,000, about 16.3 times income, because the mortgage and the income that pays it are both counted. The sample premium formula (coverage / 1,000 x $0.10 term rate x 1.2 age factor x 1.0 health factor) gives $147 a month for a 20-year term. That is the lab's own illustrative formula, not a real insurer's quote.
Finance Quest is educational. It is not financial advice, and no calculator here knows your full situation.
People often size a policy off a rule of thumb like ten times salary and stop there. That number can miss a mortgage balance entirely, which means a death still leaves the house payment to whoever's left. Add the actual debt and the actual education goal on top of income replacement, and the number usually comes out higher and more specific than a round multiple of salary.
Add up what your income would need to replace for however many years you choose, your outstanding debts including the mortgage, any education you want funded, and final expenses. That total is a needs-based estimate, and it is usually a more honest number than a flat multiple of your salary.
Term is cheaper and covers you for a set period, which fits most needs-based coverage: you want protection while the kids are young or the mortgage is outstanding, then less afterward. Whole life costs far more for the same coverage and builds cash value, which suits estate planning or a permanent need more than pure income replacement.
Yes. Smokers typically pay two to three times what non-smokers pay for the same coverage, because mortality risk is that much higher. This calculator's risk model reflects that gap, though the exact multiplier from a real insurer will vary by company.
Often less, sometimes none. If the mortgage is paid off, the kids are independent and you have no dependents relying on your income, the needs-based number can drop close to zero. Some people keep a smaller policy for final expenses or estate reasons even then.
Calculation version: 2026-2.
Source links checked: . This check confirms the linked material is available and relevant. It does not verify every figure or calculation in this lab.
Sampled calculation review on 2026-10-18 by Codex (internal AI-assisted verification), for version 2026-2. This is not independent or professional approval.
Review scope: Selected needs, existing-coverage, course-premium and zero-budget arithmetic. Rates and need weights are course assumptions; underwriting, policy adequacy and real quotes are not verified.