How much life insurance do I actually need?
By Sivaprasad Kotta, Kotta Financial Services | June 14, 2026
The internet says 10-12x your annual income. That's a fine starting point, but if you want to get this right, you need to think about what happens to the people who depend on you if your income disappears tomorrow.
Start with what your family needs
- Debts that don't disappear — mortgage, car loans, student loans, credit cards
- Years of income replacement — multiply after-tax income by years your family needs support
- Education — $80,000 to $200,000 per child for college
- Final expenses — $10,000 to $15,000 on average
A real example
A 35-year-old earning $85,000 with two kids and a $280,000 mortgage needs approximately $1,130,000 in personal coverage after subtracting existing savings and group life. According to LIMRA research, a $1 million 20-year term policy for a healthy 35-year-old costs $40 to $60 per month.
Common mistakes
- Buying too little because the premium looks cheaper
- Only counting on group life from work (usually 1-2x salary — covers one year)
- Waiting — every year you wait, premiums go up and health conditions develop
"We run through the numbers together. I shop 10 carriers to find the best rate for your health profile. No charge for the conversation."
Sivaprasad Kotta, Kotta Financial Services