How Much Life Insurance Do I Need?
How much life insurance should you get, and how much is not enough? If you’re confused when it comes to the numbers, we’re here to help!
George Kamel
What You’ll Learn
If anyone in your life depends on your income—you need life insurance. Like yesterday. But getting the right policy doesn’t have to feel like hunting for a needle in a haystack. Going through this guide will help you learn three important things: how much coverage you need, how long you need it, and how much it costs. Getting clear on this stuff today will help you protect your family’s future that much faster.
Quick Links
How Much Term Life Do You Need?
Our go-to advice for how much coverage you need is 10–12 times your yearly income for a term length of 15–20 years. But some situations are unique! Use this sheet to see if you need to adjust those numbers.
Download The Cheat Sheet
How to Pick Your Health Class
Insurance companies look at a few health and lifestyles categories to decide if you qualify for life insurance and how much it might cost to insure you. So it’s smart to be as accurate as you can, but don't stress over it. Our trusted partner Zander Insurance will double-check to make sure you’re in the right category.
Blood Pressure
Under 135/85
Cholesterol/HDL Ratio
Under 5.0
(varies by company)
Cholesterol
Under 220
Tobacco Use
*None in 5 years
Blood Pressure
Under 140/88
Cholesterol/HDL Ratio
Under 6.0
(varies by company)
Cholesterol
Under 240
Tobacco Use
*None in 3 years
Blood Pressure
Under 145/90
Cholesterol/HDL Ratio
Under 7.0
(varies by company)
Cholesterol
Under 260
Tobacco Use
*None in 1–3 years
Blood Pressure
Under 150/92
Cholesterol/HDL Ratio
Under 8.0
(varies by company)
Cholesterol
Under 280
Tobacco Use
*None in 12 months
*Please note that certain companies offer non-tobacco rates for people who use alternative tobacco products, such as cigars, smokeless tobacco or pipes.
Monthly Estimate
0 - 0
Powered by
How Much Will This Cost You?
The answer depends on a few factors, like your age, health and lifestyle. Plug in your info to get an idea of how much you’ll need to budget for your life insurance premium.
You'll also need to pick a term length on the form because we only recommend term life insurance. We never recommend whole life (aka cash value) insurance. Term life is way more affordable because it lasts for a set number of years (the term) and it doesn’t add investing into the mix. That’s the quick and dirty. If you want to know more about the differences between term and whole life insurance, you can check out this article.
How long of a term do you need?
Your policy should last until the people in your life no longer rely on your income—like when your last kid leaves the nest or when you and your spouse become self-insured. For most people, we recommend a term of 15–20 years.
How much coverage should you get?
We recommend getting 10–12 times your annual income. It gives your family enough time to get back on their feet instead of worrying about how to replace your income.
Is your situation unique?
Our normal recommendations work best for most people. But there are a few times when you might need to adjust those numbers.
For more help understanding the right amount of coverage for your situation, you can check out our cheat sheet or contact our trusted partner Zander Insurance at 833.703.2254.
How Zander Works for You!
Zander isn't a life insurance carrier. Instead, they have experts who work on your behalf, sorting through carriers to find you the right policy. So they advocate for you—not the insurance companies. If you get denied by one carrier, Zander keeps working to help you find a policy that fits your situation. Think of them as your own private detective, solving the mystery of which term life policy is right for you.
What the Process Looks Like
Contact Zander by getting an estimate online or over the phone.
Choose a quote from top-rated carriers.
Complete the online application.
Expect a phone call from Zander Insurance.
Hold tight while your policy gets underwritten.
Sign and pay for your policy—and you’re covered!
You can speed up the process by calling our RamseyTrusted partner Zander Insurance: 833.703.2254.
Term Life Basics From Dave Ramsey
In this clip from Financial Peace University (FPU), Dave explains term life insurance in a nutshell.
Helpful Articles
George Kamel
2023 Average Term Life Insurance Rate Chart by Age
We’ve crunched the numbers for 2023, and it’s no surprise that term life coverage is once again an awesome deal. So why not find your age in our average term life insurance rate chart to get an idea of your monthly cost? Let’s get into it.
Ramsey Solutions
Understanding the Cost of Life Insurance
You need life insurance to protect your family’s financial well-being. But understanding the cost of life insurance isn’t always easy. Find out how rates are set so you can pick the right plan for you.
Ramsey Solutions
Zander Insurance Is RamseyTrusted.
That’s right—RamseyTrusted. And it's a big deal. It means that Zander is the only company Dave and the entire Ramsey team recommend for term life insurance. Why? Because Zander has faithfully served our fans for two decades and will do whatever it takes to help you win. They offer the coverage you need and nothing you don’t. Seriously, we’d send our moms to them (and most of us have).