How Much Life Insurance Do I Need? The Most Common Question—Answered

At Haughn Insurance, one of the most frequent questions we hear about life insurance is, “How much life insurance do I really need?”

It’s a fair question—and one without a one-size-fits-all answer. The right amount of coverage depends entirely on your individual financial picture, your family’s needs, and your long-term goals. Life insurance isn’t about guessing a number—it’s about creating peace of mind and financial stability for those you love most.

When determining how much coverage to purchase, here are a few key factors to consider:

Replacing Income
If your loved ones rely on your income, life insurance can serve as their financial safety net. A common rule of thumb is to aim for coverage equal to 10 to 15 times your annual income, ensuring your family can maintain their lifestyle and cover daily expenses for years to come.

Covering Debts
Think of your mortgage, car loans, student loans, and credit card balances. Life insurance can help pay off these obligations so your family isn’t left with the burden of debt during an already difficult time.

Funding Future Expenses
Many families use life insurance to fund future goals such as college tuition for children or retirement savings for a surviving spouse. It’s a way to make sure your dreams for your family continue—even if you’re not there to see them through.

Covering Final Expenses
Funeral and burial costs can add up quickly. Having life insurance ensures these costs are covered, giving your family the ability to focus on healing rather than finances.

While “how much” is the top question, we often hear others as well:

  • Do I really need life insurance?
    If anyone depends on you financially—children, a spouse, or even aging parents—the answer is almost always yes.

  • What kind of life insurance should I get?
    Term life insurance offers affordable protection for a set period, while whole life insurance provides lifelong coverage with potential cash value benefits.

  • How much does life insurance cost?
    The cost depends on your age, health, and coverage amount—but many people are surprised at how affordable protection can be.

  • Will my premium always be the same, or will it change?
    Term life policies typically have fixed premiums, while other types may vary depending on structure and benefits.

At Haughn Insurance, our goal is to help you make confident, informed decisions about your financial future. We’ll take the time to understand your needs, walk you through your options, and ensure your coverage aligns with your family’s goals—today and for years to come.

Ready to discuss your life insurance needs?
Connect with our team in Dublin, Ohio, to create a plan that truly protects what matters most.