How much life insurance do you need?

A common rule of thumb is 10–12x your annual income. But the DIME method — adding up your Debts, Income replacement needs, Mortgage balance, and Education costs for children, then subtracting existing savings — gives a more accurate, personalized number. Use the calculator above to find yours.

Term life covers you for a set period (10, 20, or 30 years) and pays out only if you die during that term. It's affordable and straightforward — the right choice for most people protecting a family. Whole life covers you permanently and builds cash value over time, but can cost 5–10x more per month for the same payout.

A good starting point is to replace income until your youngest child is financially independent (usually 18–22 years) or until your spouse reaches retirement age. Most financial planners recommend a minimum of 20 years. If you have young children or a stay-at-home spouse, err on the higher end.

Many conditions are still insurable — you may simply pay a higher premium. Insurers evaluate each applicant individually. Some conditions (like well-managed type 2 diabetes) have minimal impact on rates, while others (like recent cancer treatment) may result in a postponed or declined application. A licensed broker can help you find the best option for your health history.

Employer-provided life insurance is a great benefit, but it usually only covers 1–2x your salary — far less than the recommended amount for most families. It also disappears if you change jobs. Financial advisors typically recommend supplementing with an individual policy to ensure you're fully covered regardless of your employment status.