How Do I Determine How Much Life Insurance I Need?

You may know that life insurance is important for your family’s financial security, but how much life insurance you need can be more complex. At Brevard Insurance Agency Inc in Brevard, NC, we can help you determine how much life insurance is right for you. 

Basic Formula for Determining Life Insurance Face Value 

Face value is the amount your policy will pay in the event of your death. If you want to keep how much life insurance you should have as simple as possible, multiply your annual income by 10. This is the least amount of life insurance you should carry.

Some experts recommend multiplying your annual salary by 15 and using that as your minimum face value amount. 

However, you may want to use this as a base amount, and adjust it based on a few important factors. 


Debt doesn’t go away, even in death. If you leave behind debt, your family members may be financially responsible. The last thing you want to do is burden grieving loved ones. 

To avoid this, it’s a good idea to consider how much debt you have when you are deciding on policy coverage.

The recommended method is to add all your current debts. Then add this to the income figure from the last step. 

Income Replacement 

You’ll also need to consider income replacement. If you have dependents, income replacement is important. If you have a spouse, aging parents, or a child that are relying on your income, life insurance is essential. 

When determining how much coverage you need, think about how many years of income you want to replace. If you have a teenage child, 10 years may be sufficient. However, if you have a spouse and a one-year-old, 20 years is a safer option. 

Contact Us Today

If you need life insurance in Brevard, NC, contact us at Brevard Insurance Agency Inc. Our agents will work with you to provide the right policy for your needs.