Find the coverage that’s right for you.
At SelectQuote, we can help you find the right policy for you from one of the trusted insurance companies we work with in just minutes.
How much life insurance do I need?
How much life insurance you need will depend on a few factors: your long-term financial obligations, those who are dependent on your income, the cost of final expenses and more. Many people find that 10-12 times their income is enough coverage, but this simple approach might not always provide the support you’re looking for.
Our life insurance calculator is a good place to start when trying to determine how much coverage might be right for you and your family, but weighing all your options and sifting through the fine print can become time consuming and overwhelming. We can help simplify the process, providing coverage and cost comparisons from some of the most trusted insurance companies in just minutes. We’ll take the time to get to know your needs and find the best life insurance policy options available to you.
Life Insurance Explained
Life insurance is a smart way to make sure your loved ones are financially protected should something happen to you. There are many different types of life insurance policies available, but it’s our job at SelectQuote to help you figure out which might be the best for you. Whether it’s term life insurance—which is typically the most popular and affordable option—or permanent life insurance, we’ll help you figure out what the best life insurance policy for you is.
What You Need to Cover Through Life Insurance
The “right amount” of life insurance coverage can be determined by considering everything you currently pay for and what you would need to pay for in the future. This can seem like an overwhelming question, so we’ve broken it down into a few basic categories for you.
Expenses, Debt, and Liabilities
Start by taking into account your existing expenses, any potential future expenses (such as the cost of raising a child), and current debt and liabilities. You want to make sure your beneficiaries and dependents who currently rely on your income for some of these costs are able to maintain any outstanding payments while continuing to live without worrying about a potential financial burden.
Dependents & Their Educational Expenses
Whether it’s the cost of raising a child or paying to support an aging parent, these are realistic expenses that most people face. When considering the amount it costs to raise a child, think not only everyday expenses but also the potential cost of college.
Future Savings and Final Expenses
When you’re looking for a life insurance policy, it’s important to consider how much support you’re currently providing for your family. From groceries and medical expenses to family vacations and utilities, it’s important to have a realistic view of how financially dependent your loved ones are. Additionally, it’s important to consider the cost of final expenses. The average funeral can be around $10,000, which can be an additional burden to a family without life insurance coverage.
What You Should Also Keep in Mind with Life Insurance
While the above financial obligations are important to consider, there are also a few personal factors to keep in mind when deciding on the best life insurance policy for you.
Health & Age
Both your health and age at time of purchase can directly impact the length of your policy and cost. The younger and healthier you are, the greater your chances of a favorable rate, but you’ll likely need coverage for a longer period of time. The older you are, the more likely you’ll have to pay a higher premium for certain types of coverage, but we can help you consider all available options to find you the right coverage with the right carrier at the right price.
How Much Life Insurance You Can Afford
It’s important to know ahead of time what a realistic monthly premium payment would look like for you, as it can help determine the total coverage and length of policy that is best for your needs
Still have questions? We’re here to help:
Find the Right Life Insurance for You
At SelectQuote, we can help you figure out how much life insurance and what type of life insurance is right for you and your needs. We’ll learn more about your situation and provide you with unbiased quotes from some of the most trusted companies in America in just minutes. Let us help.