A practical way to size your life cover beyond the “10 times income” rule.
Start with the rule of thumb
A multiple of 10–15 times annual income is a common starting point. It works because the payout, invested sensibly, can replace income for many years.
Add what the rule leaves out
Add outstanding loans, the cost of children’s education and marriage, and any dependants’ long-term care needs.
Subtract what you already have
Existing life cover and liquid savings that your family can rely on reduce the gap. Do not count retirement savings you would not want to spend.
Account for inflation
A fixed cover loses buying power. Review every few years or choose an increasing-cover option.
General information only; not personal advice. Rules and limits change, so verify current details. Last updated October 2026.