Why It Matters
It isn't about you.
It's about them.
Life insurance replaces what your family loses when your income stops. Here's how to think about it clearly—without the sales pitch.
What Coverage Actually Does
Keeps the roof overhead
A death benefit can pay off or keep paying the mortgage so your family doesn't have to move during the worst year of their lives.
Replaces your income
Groceries, utilities, childcare, insurance premiums—the bills keep arriving. Coverage buys your family years of stability.
Protects the plan
College funds, retirement savings and long-term goals stay intact instead of being drained to cover today.
Covers final expenses
A funeral in the U.S. commonly runs into five figures. Coverage means nobody is fundraising to bury you.
Keeps a business running
Buy-sell funding and key-person coverage keep a small business from collapsing when an owner or critical employee dies.
Buys time to grieve
Perhaps the most underrated benefit: your family gets to grieve instead of immediately scrambling for money.
Term vs. Permanent
There is no universally 'better' option—only what fits your situation. Most families are best served by term. Some situations genuinely call for permanent coverage.
Term Life
Coverage for a set period (10-30 years)
- Lowest cost per dollar of coverage
- Simple: pay a level premium, benefit paid if you die during the term
- Ideal for mortgage years and while children are dependent
- No cash value; coverage ends when the term ends
- Many policies can be converted to permanent coverage later
Permanent Life
Whole, universal & indexed universal life
- Coverage lasts your whole life as long as premiums are paid
- Builds cash value you can borrow against
- Substantially more expensive than term for the same benefit
- Useful for estate planning, lifelong dependents, or business succession
- Requires ongoing attention—some designs can lapse if underfunded
Product availability, features and guarantees vary by carrier and by state. Nothing on this page is a recommendation for your specific situation.
How Much Coverage Do You Need?
A common starting point is the DIME method. Add these four numbers together, subtract any coverage you already have, and you have a realistic target.
Debt
Credit cards, auto loans, student loans, medical debt—anything that would follow your household.
Income
Your annual income multiplied by the number of years your family would need it replaced. Ten years is a common baseline.
Mortgage
The remaining balance on your home, so your family can stay put.
Education
What you'd want set aside for each child's schooling.
Your number, in one click
This is an educational guideline, not personalized financial advice. Your actual needs may differ.
Common Myths
It's too expensive.
Most people dramatically overestimate the cost. A healthy 35-year-old can often get $500,000 of 20-year term coverage for roughly the price of a couple of streaming subscriptions.
My work coverage is enough.
Group coverage is typically 1-2x salary and it disappears the day you leave the job. It's a nice supplement, rarely a plan.
I'm young and healthy, I'll get it later.
Young and healthy is exactly when it's cheapest and easiest to qualify. Rates are locked at the age and health you buy at.
I'm a stay-at-home parent, so I don't need it.
Replacing childcare, transportation and household management has a very real dollar cost. Non-earning spouses absolutely should be covered.
I have a health condition, I'd never qualify.
Carriers underwrite conditions very differently. Part of a broker's job is knowing which carrier treats your specific situation most favourably.
Educational content
This page is general education, not insurance, legal, tax or financial advice, and not a recommendation for your specific situation. Product availability, features and guarantees vary by carrier and state, and all guarantees are backed solely by the claims-paying ability of the issuing insurance company.
See what it would actually cost.
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