Last updated September 2026 · PolicyChat Life.
How much life insurance do I need?
Short answer. Add up the jobs the money has to do and round up: the mortgage balance, the years of income your family would have to replace, and final expenses. For most working parents that lands between 10 and 20 times income. If no one depends on your income, a small final-expense policy or nothing is the honest answer.
Almost nobody asks this question on their own. In a month of real ChatGPT conversations about life insurance, one in twenty asked how much they needed; half asked what it costs. That is why a good advisor, or a good chat, recommends the amount rather than asking for it.
The jobs the money has to do
- The house. If the goal is that your family keeps the home, start with the mortgage balance, rounded up.
- Income. Multiply your yearly income by the years it needs to keep coming: about 10 for a spouse who can rebuild, 20 until young kids are grown, 30 to carry a spouse through retirement.
- Final expenses. A funeral with burial runs $8,000 to $12,000 before medical bills or a card balance. This is the whole need for many seniors.
- Subtract what is in place. Group coverage through work counts while you have the job, and usually not after.
Three worked examples
| Shopper | What the money must do | Recommended amount | Product |
|---|---|---|---|
| New parent, 35, earns $75,000, $250,000 mortgage | 20 years of income plus the house | $1.75 million | 20- or 30-year term |
| Homeowner, 41, spouse and kids, $240,000 left on the house | Pay off the house, a little breathing room | $250,000 to $450,000 | 30-year term matched to the loan |
| Retired, 72, no dependents | The funeral and final bills | $15,000 | Final expense whole life |
| Single, 30, no debts, no dependents | Nothing yet | $0 to $25,000 | None, or a small policy to lock insurability |
New parent, 35, earns $75,000, $250,000 mortgage. Twenty years of income is $1.5 million; add the mortgage and round: $1.75 million of 20-year term. A healthy applicant pays well under $100 a month for that.
Homeowner, 41, spouse and kids, $240,000 left on the house. The house is the job: $250,000 of 30-year term, matched to the loan. Add two years of income if the family would need breathing room.
Retired, 72, no dependents, wants the funeral covered. A $15,000 final expense policy. Nothing larger.
Why the rule of thumb misleads
Ten times income is a fine first guess for a family and a bad one for everyone else: too much for a single person with no debts, too little for a parent of young children with a mortgage. Size from the jobs, not the multiplier.
What Sage does with this
Sage asks who depends on you, what the mortgage is, and how many years the income should last, then says “I’d suggest about $X” with the reason, and lets you change it. You confirm a number that fits instead of guessing one.
See your own number. Sage sizes the coverage, asks three plain health questions, and shows the price range you'd actually get, before anyone asks for your phone number.
Ask Sage: Replace my income for my familyPolicyChat Life is a licensed life insurance agency. Every policy comes with a free-look period, usually 10 to 30 days depending on your state, with a full refund.