Ask five people how much life insurance they have, and most will tell you a round number — $250,000, $500,000, a million — with very little behind it. It's usually whatever an employer's group plan offered, or whatever felt like "enough" at the time. Neither one is actually a calculation.
Start with what the payout actually needs to cover
A death benefit has a job to do. For most people, that job breaks down into a few pieces: paying off the mortgage and other debts, replacing your income for however many years your family would need it, covering future costs like a child's education, and covering final expenses. Add those up, then subtract savings and any coverage you already have — what's left is your real number.
The income-replacement method
A common starting point is 10–15 times your annual income, adjusted up or down based on your specific debts and dependents. Someone with a large mortgage and three young kids needs more than someone who's mortgage-free with no dependents, even at the same income. It's a starting point for a conversation, not a formula to apply blindly.
Where group life insurance usually falls short
If you have coverage through work, it's often 1–2 times your salary — a fraction of what a full income-replacement calculation comes to. It also typically disappears the day you leave the job, voluntarily or not, which is exactly the wrong time to find out you need to re-qualify for coverage at a new (likely higher) rate.
It's not static — revisit it
The right number today isn't the right number in five years. A new mortgage, a new child, a new business, or your youngest moving out all change the math. Coverage is worth a second look any time one of those happens, not just once at the start.
Get a number that's actually yours
The coverage calculator on the life insurance page gives you a rough estimate in about thirty seconds. From there, a short conversation gets it precise — accounting for your actual debts, goals, and what you already have in place.