Updated July 2026 · Reviewed by the CoverageCo team
Add up your debts that don't disappear, the income your household would need for the years they'd need it, one-time costs like final expenses and college, and the unpaid labor you provide — then subtract existing savings and coverage. What's left is the gap worth insuring. The "10× income" rule is only a starting estimate.
Key takeaways
- Work from real obligations, not a multiplier — two people earning the same salary can need very different coverage.
- Unpaid labor (childcare, eldercare, household work) is the number people forget, and it's often the largest.
- Federal student loans are generally discharged at death; private loans often aren't.
- Employer coverage ends when the job does, and you may be older or less healthy by then.
Why '10 times your income' is a starting point, not an answer
You'll see this rule everywhere because it's easy to say, and it's not useless — it lands in the right neighborhood for a lot of families.
But it ignores everything specific about you. It treats a renter with no children the same as a homeowner with a mortgage and two kids five years from college. Two people earning identical salaries can need wildly different amounts of coverage.
A better approach takes ten minutes and produces a number you can actually defend.
Add up what would actually have to be paid
Work through these four buckets and total them:
- Debts that don't disappear — mortgage balance, car loans, personal loans, co-signed private student loans. Federal student loans are usually discharged at death; private ones often aren't.
- Income replacement — what your household would need each year without your income, times the number of years they'd need it. Until the youngest child finishes school is a common marker.
- One-time costs — final expenses, and any large near-term goal you intend to fund, like college.
- Unpaid labor — childcare, eldercare, and household work that would have to be paid for if you weren't there. This is the one people forget, and for a stay-at-home parent it can be the largest number on the page.
Then subtract what's already in place
From that total, subtract existing savings, current life insurance, and any survivor benefits your family would receive.
What's left is your gap, and that's the number worth insuring.
Don't lean too hard on work coverage
Employer life insurance is a genuine benefit, and it's usually not enough on its own.
It's typically a modest multiple of salary, which rarely closes a real gap. More importantly, it's tied to the job. If you leave, are laid off, or retire, it generally ends — and you may be older or in worse health than when you'd have bought your own policy.
Coverage you own follows you. Coverage your employer owns follows the job.
The case for buying sooner rather than later
Two things drive what you'll pay: your age and your health. Both tend to move in one direction.
Every year you wait, you're older, and any new diagnosis in the meantime becomes part of your application. Someone who buys a long-term policy in their thirties typically locks in a very different cost than the same person applying in their fifties.
None of that is a reason to rush a decision you don't understand. It is a reason not to leave it on the to-do list for another three years.
Getting a real number
Once you know roughly how much coverage you need, the next question is what it would actually cost for someone your age and health — and that requires a real quote, not a chart.
A licensed agent can run your numbers across multiple carriers, since pricing for the same person can vary meaningfully from one insurer to another. It's free, and there's no obligation.
Common questions
Is 10 times my income enough life insurance?
It's a reasonable starting estimate, but it ignores your actual debts, how many years your family would need income, and unpaid work like childcare. Adding up real obligations and subtracting existing savings and coverage gives a far more accurate number.
Is my life insurance through work enough?
Usually not by itself. Employer coverage is often a modest multiple of salary and typically ends when you leave the job — at which point you may be older or less healthy than when you could have bought your own policy.
Do I need life insurance if I'm a stay-at-home parent?
Often yes. Replacing childcare, household management, and eldercare has a real cost that the surviving parent would have to pay for. That figure is frequently larger than families expect.
Does life insurance pay off my student loans?
Federal student loans are generally discharged at death. Private student loans often are not, particularly with a co-signer, so those balances usually belong in your coverage calculation.