Protection guide
How much life insurance do I need?
There is no single figure that suits every household. The right amount of life cover depends on the financial impact your death would have on the people who rely on you.
Step one
Consider debts that would remain after your death.
For many households, the mortgage is the largest financial commitment. You may want enough cover to clear all or part of it so the surviving household is not left with the same level of borrowing and less income.
Other debts can also matter, including personal loans or other commitments that would continue to affect the family finances.
The right amount depends on who remains responsible for the debt and the household's wider resources.
Step two
Think about the income your household would lose.
If your earnings help pay for everyday living costs, clearing the mortgage may still leave a significant gap.
Essential spending
Food, utilities, council tax, transport and other regular household costs continue after a death.
Childcare
A surviving parent may face higher childcare costs or need to reduce working hours.
Education
Some families choose to include expected school or university costs in their protection planning.
Time to adjust
Cover can provide a financial buffer while the household reorganises its income and spending.
Step three
Who depends on you, and for how long?
The amount and duration of cover often depends on how long other people are expected to rely on your income.
A household with young children may need protection for much longer than a household whose children are already financially independent.
Mortgage balances can fall, children can become independent and savings can build. That is why some needs are suited to decreasing cover while others may call for level cover.
Step four
Subtract the resources already available.
Death-in-service benefit
Your employer may provide a lump sum based on salary while you remain employed.
Existing life insurance
Older policies may already cover part of the financial need.
Savings and investments
Accessible assets can reduce the amount of additional insurance required.
Partner's income
A surviving partner's earnings can reduce the income gap, although childcare or other responsibilities may change their ability to work.
Death-in-service cover can change or disappear if you change employer or stop working for the organisation.
Step five
Choose how long the cover should last.
The term should usually reflect how long the financial risk is expected to exist.
For example, mortgage-related cover might run alongside the mortgage term, while family-income needs might continue until children are expected to become financially independent.
The aim is not to buy the largest policy possible, but to insure the financial risks that would materially affect the household.
Keep it relevant
Your protection need changes as life changes.
Buying or moving home
A larger mortgage can increase the amount of cover required.
Having children
Dependants can increase both the amount and duration of protection needed.
Job change
Employer death benefits and income can change.
Debt reduction
Lower borrowing or larger savings can reduce the financial gap.
If replacing existing cover, do not cancel the old policy until the replacement has been fully underwritten, accepted and put in force, and you understand any differences in terms, exclusions, premiums and benefits.
Protection advice
Want to calculate the amount of cover your household actually needs?
We can review your mortgage, income, dependants, existing benefits and savings to identify the financial gap that life insurance may need to cover.
Book a conversationThis guide is for general information only and is not personal protection or financial advice. The amount and type of life insurance required depends on individual circumstances, policy terms and underwriting. Content based on current MoneyHelper consumer guidance reviewed on 16 September 2026.