Reviewed by Joe Chalk, Executive Client Advisor at CoverLife · Last reviewed
PROTECTION GUIDES
How much life insurance do I need?
Add up what your family would have to pay for without you, take off what would already be there, and you have your starting figure. Our calculator does the sums.
The short answer
You need enough life insurance to cover what your family would have to pay for if you died, less what would already be available to them. That usually means the mortgage and other debts, bills and living expenses for as long as your family would rely on your income, childcare and education costs, and funeral costs.
Take off existing life cover, death-in-service benefit and savings your family could use, and the difference is the cover to consider.
Work out your number
Enter your own figures below and leave out anything that does not apply. Your estimate updates as you type. Tap the question marks for what to include in each field. If you have a partner, work out a figure for each of you separately.
How much life insurance do I need calculator
Estimate how much life cover you may need, based on what your family would have to pay for without you.
Fill in the fields that apply to you. The estimate updates as you type.
Your total cover estimate
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GET A LIFE INSURANCE QUOTEA starting point, not advice. It does not allow for rising prices, interest or tax, and a policy's cost depends on your age, health and the cover you choose. Your figures stay in your browser and are not sent to us.
What to include: line by line
Each part of the calculation answers a different question about what your family would face. The table shows what to count in each, and how that part is often covered.
| Need | What to count | How it is often covered |
|---|---|---|
| Remaining mortgage | The balance still owed and the years left on the mortgage. | Decreasing cover for a repayment mortgage; level cover for interest-only. |
| Loans, credit cards and other debts | Personal loans, car finance, credit cards and overdrafts you would not want your family to inherit. | Usually included in a level amount. |
| Bills and living expenses | The total your family would need for bills and everyday costs, for as many years as they would rely on your income. A yearly figure multiplied by the number of years is a simple way to reach it. | Level cover, with a term that runs as long as the need. |
| Childcare, school or higher education | Childcare, school costs and any help with university. Include the cost of replacing care a parent provides, even if that parent does not earn. | Level cover, usually until your youngest child is independent. |
| Funeral costs | Your own estimate of the funeral and related costs. | Part of a level amount, or a smaller separate policy. |
| Additional lump sum | Anything extra you would like to leave, for example towards a first home. | Level cover. |
| Less: existing cover and savings | Personal policies you will keep, death-in-service benefit from your employer, and savings your family could use. | Death-in-service usually stops if you leave that job. Emergency savings are usually best left out. |
Rules of thumb, and where they fall short
You may have heard that life cover should be a multiple of your salary, often ten times. It is a quick starting point, but it looks only at income. It ignores what you owe, how old your children are, and what is already in place.
Two people on the same salary can need very different amounts. One with a large mortgage and a baby may need far more than the rule suggests; one with the mortgage nearly paid and children who have left home may need much less. Working through your own figures, as above, gives a number built around your family.
How long the cover should last
The amount is only half the answer. Each part of your need has its own time frame: the mortgage runs to the end of its term, and support for children usually runs until they are independent. The term of your cover should match the longest need you want to protect.
Splitting cover into more than one policy lets each part end when it is no longer needed, which can keep the overall cost down. Our guide to life insurance for mortgage protection explains decreasing and level cover in more detail. If you are weighing up cover with no end date, read our article on term versus whole of life insurance.
Who needs more, and who may need little or none
Likely to need more cover
- •Parents of young children, because the need lasts many years
- •Anyone with a large mortgage or debts shared with a partner
- •Single parents and sole earners, with nobody else's income to fall back on
- •Stay-at-home parents, whose care would cost money to replace
May need little or none
- •Nobody depends on your income and there are no shared debts
- •Existing cover and savings already meet your family's needs
- •Your children are independent and the mortgage is paid off
If the full amount is more than you can afford
Some cover is better than none, and the figure can be built up in stages. If the number is out of reach, start with the needs that would hurt most:
- •Clear the mortgage, using decreasing cover if it is a repayment mortgage
- •Cover your family's essential costs for the years until your children are independent
- •Add lump sums for future costs later, if your budget allows
Worth knowing
When to work it out again
Your number changes as your life does. Revisit it when you have a child, move home or remortgage, change jobs, separate or marry, or pay off a large debt. Our guide to reviewing your existing protection explains what to check, and why adding a new policy alongside an existing one can be better than replacing it.
Talk through your number with us
The calculator gives you a starting figure. We will check it with you, suggest how to split it between policies and terms, and compare what that cover would cost. There is no fee for our advice.
How CoverLife can help
CoverLife Insurance gives personalised protection advice, with a dedicated adviser for your application and ongoing support. We have access to a panel of 15 protection insurers, with availability varying by product and circumstances, and we compare benefits and terms alongside price. We also help with policy reviews and with applications involving medical conditions, unusual occupations or hazardous hobbies.
We charge no advice or arrangement fee; we receive commission from the insurer. CoverLife Insurance is a trading name of CoverTrade Risk Management Ltd, authorised and regulated by the Financial Conduct Authority, firm reference number 1020148. More about CoverLife
Related guides
The questions people usually ask next.
- Life insurance for mortgage protectionGetting the mortgage part of your number right, including decreasing versus level cover.
- Life insurance for parentsChoosing how long cover for your children's needs should last.
- Life insurance for stay-at-home parentsWhy a parent who does not earn can still leave a large gap to fill.
- Combining life, critical illness and income protectionLife cover pays on death. Your family may also need protection if you are ill or cannot work.
Common questions
How much life insurance do I need?+
Enough to cover what your family would have to pay for without you, less what would already be there. Add up the mortgage and other debts, what your family would need for bills and living expenses for as long as they would rely on your income, childcare and education costs, and funeral costs. Then take off existing life cover, death-in-service benefit and savings your family could use.
Is ten times my salary enough life insurance?+
It can be a rough starting point, but it ignores what you actually owe and how long your family would rely on your income. Someone with a large mortgage and young children may need more; someone with no mortgage and grown-up children may need much less. Working through your own figures gives a more useful answer.
Should I count my death-in-service benefit?+
You can count it, as long as you remember it normally stops if you leave that employer, and the amount can change with your salary or the scheme. If you expect to change jobs, or would want cover that stays with you, it is worth treating it as a bonus rather than relying on it.
Do both partners need the same amount of cover?+
Not necessarily. Work out the figure for each person separately: what the household would need if that person died. A partner who earns less, or who provides most of the childcare, can still leave a large gap, because paying for childcare and help at home costs money.
Can I split my cover across more than one policy?+
Yes. A common approach is decreasing cover for a repayment mortgage alongside a level policy for the family's other needs. Separate policies can also have different terms, so cover for the children's needs can end when they are grown up while mortgage cover runs to the end of the mortgage.
Is there a limit on how much life cover I can have?+
Insurers limit cover to an amount that is reasonable for your financial circumstances. For larger amounts they may ask for evidence of income or of what the cover is for. We can check this with insurers before you apply.