Why is a term policy the right kind of life insurance for most people?

Low Cost and Simplicity

Term life insurance guarantees financial protection for your family over a specific period — the term — before expiring. If you die before the term ends, your beneficiary receives a payout that can be used to cover funeral costs, bills, or other expenses. 

How Much Coverage is Enough?

There are many different approaches to calculating the ‘right’ life insurance amount. No two people will be the same but the following guidelines will help shape your discussions.

Rule of Thumb

10-15x your individual income

The amount of life insurance you get should be enough to replace your lost income and cover your family's future expenses such as mortgage payments, education costs, and other bills.

For Parents or Guardians

Income multiple + $XX per child

If you are a parent or guardian of a child, estimate a coverage amount by using the "multiply by 10-15x" rule, then add at least $100,000 for each child or future child.

The DIME Method

Debts, income, mortgage, education

Add up estimates of the financial responsibilities you have as a household

• Outstanding debts

• Income multiplied by the number of years you family will depend on it

• Balance left on the mortgage

• Estimated cost of your children’s education (minus existing education savings)