How Much Life Insurance Does the Average Family Need?
It’s a common question—and an important one: You don’t need complicated math to get close to the right number.
A Simple Starting Point
A common rule of thumb is 10–15 times your annual income.
For example: $75,000 income → $750,000 to $1,125,000 in coverage is a good baseline, but most families need to look a little deeper.
Four Things to Consider
1. Income Replacement
How long would your family need financial support if your income disappeared? Many families plan for 10–20 years.
2. Debts
Mortgage, car loans, credit cards, and other debts should be considered so they don’t fall on your family.
3. Future Expenses
College, childcare, and final expenses are often overlooked but can be significant.
4. Savings & Existing Coverage
Employer life insurance and savings help—but are usually not enough on their own.
What Most Families End Up Needing
For many families with children and a mortgage, coverage often falls between $500,000 and $1,000,000. The right amount depends on your specific situation.
Term vs. Permanent Life Insurance
Term life is affordable and designed to protect your income during key years.
Permanent life lasts a lifetime and is often used for final expenses or legacy planning.
Some families use a combination of both.
One Final Thought
The biggest mistake families make isn’t choosing the wrong policy—it’s waiting too long. Life insurance is generally more affordable and easier to qualify for when you’re younger and healthier.
If you’re not sure how much coverage makes sense for your family, a simple conversation with an agent at Bragg Insurance Agency can help clarify your options.
