Start with what the people who depend on you would still need. Subtract the income, assets and coverage already available. Then decide whether a policy has a job, how large that job is, and how long it lasts.
Skip the shortcut: an income multiple can be a rough screen, but a needs-based review is more useful because debts, dependents, assets, survivor income and time horizon differ by household.
Illustration only. A real review also considers taxes, timing, liquidity, policy terms, Social Security survivor benefits, pensions and whether employer coverage continues.
Do not start with a product name. Start with the financial problem the policy is supposed to solve.
This example uses round numbers to teach the method. It is not a recommended coverage amount or a substitute for an individualized review.
That is the amount left unfunded in this simplified example. Change the assumptions and the gap changes too.
Do not double count. Employer coverage may disappear after a job change. Investment assets may already be assigned to retirement. Survivor Social Security or a pension may reduce the gap, but only after you verify eligibility and timing.
Read the Complete Life Insurance Guide →Switch the job. The point is not to choose a product for you. It is to show why policy duration and features should follow the problem being solved.
Examples can include replacing earnings while children are dependent, covering a mortgage payoff period, or bridging a working spouse to retirement.
See term-life mechanics →A lifelong dependent, business agreement, deliberate legacy goal or estate-liquidity need can create a longer-duration coverage question.
See later-life coverage decisions →If survivors can meet obligations from income and assets and there is no specific lifelong purpose, the answer can be to keep the risk instead of buying more coverage.
See when seniors may not need new coverage →Educational comparison only. Policy suitability depends on health, underwriting, affordability, legal and tax circumstances, policy terms, guarantees, fees and the household's actual financial need.
Re-run the survivor gap when earned income falls away, assets grow, debt changes and retirement income starts. The policy should follow the remaining need, not its original sales story.
VA currently allows eligible veterans to apply for VGLI within 1 year and 120 days after separation. Applying within the first 240 days avoids a health review. Compare alternatives inside that window rather than after it closes.
These are the three direct Life Insurance resources currently in the category. Each has a different reader job.
Use the foundation guide to understand coverage amounts, beneficiaries, underwriting and the difference between term and permanent insurance.
Read the guide →
Use this when old income-replacement logic no longer fits and you need to decide whether a spouse, debt, business or legacy goal still creates a gap.
Read the guide →
Use this before the VGLI application window closes to compare guaranteed access, age-based premiums and private underwriting tradeoffs.
Read the guide →NAIC recommends estimating the family's financial needs, debts, education, ongoing expenses and resources instead of relying only on a simple income multiple.
NAIC consumer guidance ↗NAIC describes term as coverage for a specific period and permanent/cash-value insurance as longer-duration coverage with additional features and higher costs.
NAIC Life Insurance Buyer's Guide ↗IRS says proceeds paid because of the insured's death are generally not taxable to the beneficiary, but interest and certain transferred policies can be exceptions.
IRS life-insurance proceeds guidance ↗Investor.gov warns that variable life combines insurance with investment options and can carry significant fees, market risk and policy-termination consequences.
Investor.gov variable life guidance ↗Financial Clarity connects insurance decisions to retirement, taxes, survivor income, estate planning and the rest of the household plan.
