Step 1: Add up the needs
List the costs your death would leave behind.
- Final expenses: funeral, burial or cremation, and medical bills
- Debts: mortgage, car loans, credit cards, personal loans
- Income replacement: the years your family would need your paycheck
- Future costs: childcare, education, care for a dependent adult
Step 2: Subtract what is already there
Count savings, existing life insurance, including any through an employer, and other assets your family could use. Keep in mind that workplace coverage usually ends when the job does.
Step 3: Match the amount to the need
If the goal is only to cover final expenses, a small permanent policy may be enough. If the goal is replacing income for years, the number will be much larger and term coverage is usually how people afford it. Rules of thumb such as ten times income are a starting point, not a substitute for your own numbers.
Common questions
What does a funeral cost?
The National Funeral Directors Association reported a 2023 national median of $8,300 for a funeral with viewing and burial, and $6,280 for a funeral with cremation. Cemetery costs are extra.
Can I have more than one policy?
Yes. Many people combine a term policy for temporary needs with a small permanent policy for final expenses.
This page is general information, not insurance, legal or tax advice. Policy terms, eligibility and pricing vary by insurer and state. A licensed insurance agent can explain the specific products they offer.