Step 1: Income replacement
Multiply your annual take-home pay by the number of years your family would need it — often until your youngest child is independent. Many planners use 10–15× income as a quick check.
Step 2: Debts and the mortgage
Add your mortgage balance (including VA loans), car loans, credit cards and any other debts you wouldn't want your family to inherit.
Step 3: Future goals
College, weddings, a surviving spouse's retirement — add the big goals you'd still want funded.
Step 4: Final expenses
Funeral, burial or cremation and final medical costs. VA burial benefits may cover part of this for eligible veterans.
Step 5: Subtract what you already have
- SGLI or VGLI coverage
- Employer or department group life
- Savings and investments
- Survivor benefits your family is likely to receive, such as Social Security survivor benefits, SBP or DIC — only if eligibility is clear
Example
| Need | Amount |
|---|---|
| Income replacement ($60,000 × 12 years) | $720,000 |
| Mortgage and debts | $280,000 |
| College for two kids | $100,000 |
| Final expenses | $15,000 |
| Minus existing coverage and savings | –$450,000 |
| Coverage gap | $665,000 |
This is an illustration, not a recommendation. Your advisor will tailor the numbers to your family.
Frequently asked questions
Is 10 times my income enough?
It's a reasonable starting point, but families with young kids, large mortgages or a single income often need more.
Should a stay-at-home spouse have life insurance?
Yes. Replacing childcare, household management and transportation can cost tens of thousands of dollars per year.
This guide is general education, not insurance, tax, legal or benefits advice. Verify VA program details at VA.gov.
