A common starting point is to multiply your annual income by 10 to 12 — but that's a rough guideline, not a personalized answer. The right amount depends on the specific obligations, dependents, and goals you want the policy to cover.

The DIME method is a more practical framework: add up your Debts (mortgage, car loans, credit cards), Income replacement needs (years of income your family would need), Mortgage balance, and Education costs you'd want to cover for children. The total gives you a meaningful starting figure.

From there, factor in personal circumstances. A stay-at-home spouse with three young children typically needs more coverage than a dual-income household with grown kids. Existing assets, savings, retirement accounts, and other policies all reduce the gap insurance needs to fill.

A licensed agent can walk you through these factors and arrive at a coverage amount that matches your real-life picture, then shop carriers to find a policy at a fair rate.

Articles current as of April 30, 2026

These articles provide general informational content only. They are not insurance, tax, legal, or financial advice. Specific policy terms, conditions, exclusions, and availability vary by carrier and state. Consult a licensed agent for guidance on your situation.

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