Estimate life insurance coverage needed for your family.
Life cover is sized by the DIME approach — debts, income, mortgage, education — which builds the need from what the money has to do rather than from a rule of thumb. Income replacement is the largest component: the number of years chosen should reach at least until the youngest child is independent, and often to the surviving partner's retirement. Debts are cleared in full, education is funded, and final expenses are added. Subtract the cover and liquid savings you already hold and the remainder is what you need to buy. The resulting multiple of income is a useful sanity check: most families with young children land between eight and fifteen times income, which is why the common ten-times rule of thumb is a reasonable starting point but a poor substitute for the calculation.
Life Insurance Family Coverage
Need = income x years of replacement + debts + education fund + final expenses; additional cover = need - existing cover - liquid savings
An estimate for discussion, not financial or insurance advice. Appropriate cover depends on your dependants, tax position, employer benefits and existing policies — consult a qualified adviser or licensed broker before buying or cancelling cover.
It is a starting point, not an answer. A family with a large mortgage and young children may need fifteen times; one with no debt and grown children may need far less.
Liquid savings, yes — they are available immediately. Retirement accounts and illiquid assets are less useful, since drawing on them may carry penalties or leave the survivor without a retirement provision.