Money Talks, So Should You

Q&A: How much life insurance should I have?

Steve Doster
by Steve Doster, The Garrett Network  (@dosterfinancial)

Hmm, that’s a tough one to answer because it can be so different for each individual.

One rule of thumb bantered about is to have 10-15 times your salary in life insurance. So if you make $100,000 per year, then you should have about $1 million to $1.5 million in life insurance.

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However, it depends on things such as if your single or in a partnership, if both partners work or only one, or if you have young kids.

If you have kids, do you want life insurance to pay for college? Do you want life insurance to pay off the mortgage?

These are all questions that impact how much life insurance a person should have.  

One piece of advice I can give everyone is to stick with term life insurance. Don’t get involved with those expensive variable or universal life policies. Stick with the affordable term life insurance policy.


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Steve is president and founder of Doster Financial Planning, a commission-free firm based on San Diego, CA. He is a CERTIFIED FINANCIAL PLANNER™ professional with an MBA fom Arizona State University and a BS in mechanical engineering from the University of Arizona. Steve is proud to say he doesn’t sell financial products or earn commissions on the advice he provides to clients. His primary goal is to educate people to understand and select the best ways to achieve their unique financial future.