So, you know you need life insurance because you have loved ones depending on you (like your spouse or a bouncy bundle of joy). But now you’re thinking, How much life insurance do I need?

• Coverage equal to 10–12 times your annual income
• Term of 15–20 years (how long the policy lasts)
• Level term policy (so the premium stays the same)

So, if you make $50,000 a year, you need a policy worth around $500,000–600,000.

You can get an idea of how much you need (and save some brain calories while you’re at it) by using this quick life insurance calculator.

• It gives your family a financial cushion and room to grieve if you die.
• They can invest the payout into good growth stock mutual funds (with a 10–12% return).
• The investment growth could replace your salary for years to come.
• Get 12 times your income if you plan to pay for your kids’ college.

• You only need life insurance while someone depends on your income.
• It’s enough time for the kids to grow up and become independent.
• It gives you and your spouse time to build enough wealth to self-insure.

• Think of all they do (like food-making, kid-toting and housecleaning).
• Calculate how much it would cost each year to pay people to do all that.
• On average, they need their own policy worth $250,000–400,000.

• If you have debt, it’s more reason to get life insurance.
• Your family needs enough to cover bills and debts if you pass away.

• But we’ll name a few reasons why you might need it:
• If you want a fancy funeral (like the Rolls-Royce of coffins)
• If you plan to get married and start a family soon
• If you’re a single parent

• The point of life insurance is to replace your income if you die.
• If you have dependents, now is the best time to get it.
• If you have young kids, you need it for at least 15–20 years.
• Even if your spouse works, they count on your income too.
• Get a term life insurance policy worth 10–12 times your income.