How much life insurance do I need?

Multiply your annual income by 10 to 12 to see how much capital it takes to replace your earnings for the years your family would otherwise rely on them. A $100,000 income suggests $1 million to $1.2 million as a floor, before any debt is added. The multiplier is a shortcut for the same math the calculator does properly.

Then layer on the obligations that do not shrink when you are gone: the mortgage balance, car loans, credit cards, and any loan a cosigner would inherit. In Texas, the homestead property can pass to a surviving spouse or minor children with protections from most creditors, but the mortgage payment itself does not disappear, so the loan still belongs in the calculation.

Childcare and future college costs are the two most commonly missed items, and both are large. A family with two young children in the Dallas or Houston metro can be looking at six figures of childcare alone before tuition enters the picture. Add a working spouse's lost income if they would need to step back from a career.

Final expenses are a smaller line item but a real one, and one-time costs such as estate settlement or a business buyout belong in the total if they apply. Texas being a community property state also affects how assets and debts are treated between spouses, which is worth understanding before deciding how much of the coverage should be earmarked for debts versus income support.

Use the coverage calculator for your own figures, then price the result. The point of running the number is that the coverage amount, not the product, is the decision that protects your family, and term life makes a $1 million face amount far more achievable than most people expect. Our Texas quote comparison shows both the coverage and the monthly cost side by side.