Determining Coverage

Everyone’s needs are different. Figure out how much coverage is right for you.

How much coverage do I need?

As you move through the different stages of life, your financial goals tend to change — from saving for a child's education, to helping aging parents, to planning for retirement. At every stage, we want you to feel financially secure. Planning ahead and evaluating your life insurance needs is a smart way to ensure your family is protected.

Answering just a few basic questions about your situation will give you a good start to understanding the right amount of life insurance coverage for you:

  • What future expenses, such as saving for college or retirement, should I consider?
  • What outstanding debts, such as a mortgage, do I need to pay?
  • How long will I need to provide an income stream for my dependents?
  • How accessible are my financial assets?

What to consider when determining your coverage

  • Mortgage payments
  • Estate expenses
  • Daily living expenses
  • Medical bills
  • Outstanding debt
  • Child care expenses
Quickly calculate your life insurance needs

Answer a few easy questions and see how much coverage makes sense for you.

Life stage scenarios

View the life stage examples below to estimate how much life insurance you might need.

Married with children & one income

Tom, 40, is the primary income earner and his wife Julie, also 40, works full time in the home taking care of their kids — ages 3, 8 and 10. Tom and Julie want to make sure their life insurance will cover Tom’s income. The most important thing to them is that Julie can continue to stay at home with the children. They want coverage that pays off their mortgage and any outstanding debt, and also provides for their children's education.

  • Income: $180,000
  • Future Education: $300,000
  • Savings: $30,000
  • Debt: $350,000
  • Monthly Expenses: $5,500

This couple should consider: $1,900,000 to replace income, pay off mortgage and debt and fund college expenses

Single parent with one child

Phillip, 38, is the sole income earner. He wants to make sure his life insurance gives his twelve-year-old daughter financial security.

  • Income: $80,000
  • Future Education: $100,000
  • Savings: $17,000
  • Debt: $150,000
  • Monthly Expenses: $3,500

This single father should consider: $800,000 to replace income, pay off debt and fund college expenses

Empty nesters approaching retirement

Dave, 56, and Rachel, 52, are planning for retirement. They are looking for a life insurance program that can provide them with income protection as well as supplement their retirement savings. Since they both work, they know they each need coverage to meet their retirement goals should something happen to either one of them.

  • Income: $210,000
  • Future Education: N/A
  • Savings: $225,000
  • Debt: $0
  • Monthly Expenses: $3,500

This couple should consider: $735,000 each to replace income and supplement retirement savings

What is Group Variable Universal Life (GVUL) Insurance?

GVUL is a single policy featuring both life insurance and investment options. See how GVUL can work for you.

The examples shown are hypothetical and are used for informational purposes only. Coverage amount reflects seven years of household income replacement plus outstanding debt and future education expenses (without inclusion of expenses and without reduction for savings). Your particular needs may vary. You may utilize the Life Insurance Calculator tool to assist you in determining the amount that is best for you and your specific needs. However, in any situation, these examples and the calculator should not be regarded as advice and you may want to consult with your tax advisor or financial planner/advisor in determining the coverage amount that is right for you.