How Much Life Insurance Do You Really Need?

One of the most common questions we hear at Bella Insurance is, "How much life insurance do I actually need?" The honest answer: it depends on your income, debts, family, and goals — but there's a simple way to estimate it.

A common rule of thumb is 10 to 15 times your annual income. If you earn $80,000 a year, that means $800,000 to $1.2 million in coverage. This helps your family replace your income for at least a decade while they adjust.

But income is only part of the picture. Add up your mortgage, debts, your children's future education, and any final expenses. Subtract savings and existing coverage. The gap is what you need.

In NYC, where the cost of living is high, many families underestimate how quickly expenses add up. A term life policy is often surprisingly affordable — many young, healthy New Yorkers can get $500K of 20-year term coverage for less than the cost of a monthly subway pass.

Every situation is different. The best way to know your number is a free, no-pressure conversation with an independent broker who can compare options across multiple carriers.