How Much Life Insurance Do I Really Need?

"10 times your income" is the answer you'll find everywhere, and it's a reasonable starting point — but it's not really an answer for most people with a mortgage, a business, or dependents with specific needs.

Start with what needs to be covered

A more useful starting list looks like this:

• Outstanding debt (mortgage, business loans, lines of credit)
• Income replacement for however many years your family would need it
• Future costs you're currently funding — education, care for a dependent
• Final expenses and any tax liability triggered at death

Business owners have an extra layer

If you're incorporated, coverage decisions get tangled up with corporate structure — whether the policy is owned personally or corporately affects both the tax treatment and what the payout can be used for.

Term vs. permanent isn't a values question

It's a math and timeline question: how long do you need the coverage, and does a permanent policy's role in your estate or wealth strategy justify its cost.

Coverage isn't a "set once" decision

Income, debt, and dependents change. A policy that made sense five years ago may be significantly over- or under-sized today, especially after a business changes structure or scale.

The honest starting point is a real conversation about your numbers — not a multiplier applied to your salary.