How Much Term Life Insurance Do You Really Need?

How Much Term Life Insurance Do You Really Need?

Protecting Your Family Without Overpaying

You know you need life insurance — but how much is enough?
It’s one of the most common questions young families ask us at Roemer & Associates. The right coverage amount depends on your income, debt, and family goals. Let’s break it down so you can feel confident in your decision.

1. Start With the “10× Income” Rule

A good rule of thumb is to carry 10 times your annual income in life insurance.
If you earn $60,000 per year, that means about $600,000 in coverage.

This ensures your family can maintain their lifestyle, pay the mortgage, and cover long-term expenses like college.

2. Add Up Your Major Debts

Include your mortgage, car loans, credit cards, and student loans.
If you owe $250,000 on your home and $30,000 in other debts, that’s an additional $280,000 your policy should cover — so your family isn’t burdened financially.

3. Factor in Future Expenses

Don’t forget education, childcare, or college savings.
A four-year degree can easily exceed $100,000 per child. If you want that option open for your kids, include it in your coverage estimate.

4. Consider Your Spouse’s Income and Needs

If your partner works, you may not need as much coverage, but you will still need enough to give them time to adjust. If one parent stays home, remember: replacing childcare, meals, and household support has real financial value.

5. Don’t Overbuy — Reassess As You Grow

You can always start with an affordable term plan and increase coverage later as your income rises. The goal is to protect what you have today, not to overextend your budget.

A well-structured plan grows with your family — not against it.