How Much Term Life Insurance Do You Need?
You should have 10–12 times your annual income in guaranteed renewable term life insurance. Why? Because life insurance isn’t about leaving an inheritance—it’s about replacing your income that your loved ones depend on.
Let’s break it down: If you earn $50,000 per year and have $500,000 in term life insurance, your family would receive that payout if something happened to you. Your spouse could invest it in a solid mutual fund, earning a 10% return annually. By withdrawing just that 10% each year, your spouse would receive $50,000—your income—without ever touching the principal. That’s how life insurance replaces your income and protects your family’s financial future.
Ready to see how much coverage you need? Use our Term Life Insurance Calculator to get started.