May 29, 2026
A reasonable starting point: annual income x 60% x the number of years your family would need support, plus outstanding debt, plus future education costs, minus existing coverage and liquid assets.
The 60% reflects the fact that a household loses one person's spending as well as their income. The years figure is usually until the youngest child finishes school, or until a surviving partner reaches financial independence.
Run the number before anyone quotes you a product. When you know your target, the conversation stops being a sales pitch and becomes a purchase.
This article is educational content, not individual advice. Bring your own numbers to a class or a consultation and we will work through them together.
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