How Much Term Life Coverage Do You Actually Need?

The honest answer is: it depends on what you want the policy to do. But there is a simple way to think about it that doesn't require a spreadsheet.

Start with your mortgage balance. That's the floor. Add a few years of household income if you have kids or a partner who would need time to adjust. If there are education costs on the horizon, factor those in too.

For term length, most families match the policy to the years when the loss of income would hurt most — often the length of the mortgage, or until the kids are independent. A 20 or 25 year term is common for a reason.

None of this needs to be perfect on day one. Coverage can be adjusted as life changes. The goal is to have something honest in place, not to over-engineer it.