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.
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.
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 RamseyTrusted® partner Zander Insurance will double-check to make sure you’re in the right category.
Under 135/85
Under 5.0
(varies by company)
Under 220
*None in 5 years
Under 140/88
Under 6.0
(varies by company)
Under 240
*None in 3 years
Under 145/90
Under 7.0
(varies by company)
Under 260
*None in 1–3 years
Under 150/92
Under 8.0
(varies by company)
Under 280
*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.
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.
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.
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.
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.
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.
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!
In this clip from Financial Peace University (FPU), Dave explains term life insurance in a nutshell.
The short answer to “How much life insurance do I need?” is: a policy worth 10–12 times your annual income. But there are a few more details that affect the final number. I’m going to give you an easy way to figure out how much life insurance you need.
George Kamel
We’ve crunched the numbers for 2025, 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
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
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).
