Insurance
How much life cover? A simple framework
Human-life-value style questions to size cover—expenses, goals, debts—without inventing a one-size multiple.
7 min read · Updated August 2026
Start with dependents’ needs
Estimate years of income replacement, outstanding loans, and major goals (education, home) that should not collapse if you die. Subtract existing cover and liquid assets earmarked for the same purpose.
Income multiples are only a shortcut
Rules of thumb (for example “10× income”) ignore debt, spouse income, and lifestyle. Prefer a needs analysis, then sanity-check affordability of premiums against take-home pay.
Review when life changes
Marriage, children, home loans and career jumps change the right number. Revisit cover when those events happen—not only at policy anniversary marketing calls.
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Educational content from Aaru Wealth. Not investment, tax or legal advice.