Figure out how much coverage actually makes sense for your situation, and understand the real differences between the types of policies out there.
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Common answers: until your kids are grown, until a mortgage is paid off, or until retirement. If your goal is more about leaving a legacy or covering estate taxes rather than replacing income, this math may not be the right fit, worth raising on a call so we can look at it differently.
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Many people plan for somewhere between $10,000 and $15,000 here, based on typical funeral costs as of 2026, these costs tend to rise over time.
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Suggested Coverage Amount
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How this number breaks down
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This calculator gives an educational estimate of a common starting point for life insurance coverage, not a personalized recommendation. It is not financial, tax, or legal advice, and actual coverage needs vary by individual circumstances, state, and carrier. This is a starting point for conversation, not a guarantee, and it's not a substitute for advice from a qualified financial, tax, legal, or insurance professional.
Term Life Insurance
What it isCoverage for a set period, usually 10, 20, or 30 years. Pure death benefit, no cash value.
Best forCovering a temporary need, like income replacement while kids are young or until a mortgage is paid off. Generally the lowest cost way to get a large amount of coverage.
Trade-offCoverage ends when the term ends, unless you renew (usually at a much higher rate) or convert to a permanent policy. No cash value builds up.
Indexed Universal Life (IUL)
What it isPermanent coverage with flexible premiums, where cash value growth is linked to a market index (like the S&P 500), subject to a cap and a floor that limits both losses and gains.
Best forPeople who want permanent coverage plus the potential for higher cash value growth than whole life, with protection against market losses. Often used alongside retirement planning, or to help pass on wealth to the next generation generally income-tax-free. For larger estates, or in one of the handful of states with their own lower-threshold estate taxes, it can also help provide liquidity to cover those costs.
Trade-offMore complex than term or whole life. Caps, floors, and internal costs vary significantly by carrier and can change over time. Illustrated growth projections are not guarantees.
Whole Life Insurance
What it isPermanent coverage that lasts your entire life, with fixed premiums and cash value that grows at a guaranteed rate set by the insurer.
Best forA permanent need, like final expenses or leaving a guaranteed legacy to your heirs generally income-tax-free, for people who want predictability and contractual guarantees over growth potential. It can also help provide liquidity for estate taxes in the specific cases where they apply.
Trade-offPremiums are significantly higher than term for the same death benefit, and cash value typically grows more slowly than market-linked options.
What about "living benefits"?
Living benefits aren't a separate type of policy, they're a rider that can often be added to term, whole, or IUL policies. They let you access part of your death benefit early if you're diagnosed with a qualifying chronic, critical, or terminal illness. Worth asking about regardless of which type of policy fits you.
So which one is right for you?
There isn't a single answer that fits everyone. It comes down to whether your need is temporary or permanent, your budget, and whether cash value growth is something you actually want to prioritize. Someone protecting their income for the next 20 years has different needs than someone doing estate planning at 55.
Not sure which fits your situation?
A Financial Reset Call is where we talk through your actual needs and figure out what genuinely makes sense, not what's easiest to sell.
This comparison is general education about how these policy types commonly work, not a recommendation of any specific product, carrier, or company. Product features, costs, and availability vary by carrier and state. Johnny is a licensed life insurance agent, and any specific policy recommendation would come through a full conversation about your needs, not this page. This is not financial, tax, or legal advice.
