Why 10x income is usually wrong
The popular “10x income” rule was coined in an era of smaller mortgages, higher savings rates, and single-earner households. In 2026, median household income is about $78k and the median new mortgage is $370k, so 10x income on a dual-earner household with two kids under 10 routinely under-buys by 30–50%.
The DIME method — Debt, Income replacement, Mortgage, Education — is a better starting point. Add them up, subtract existing liquid assets, and the result is your coverage target. This quiz is DIME with age-based and dependent-count adjustments baked in.
The real cost at each coverage level
Here are actual 20-year level term quotes for a healthy 35-year-old non-smoker from carriers like Haven Life and Ladder in April 2026:
- $500k: $22–$30/month
- $1M: $38–$55/month
- $1.5M: $52–$75/month
- $2M: $75–$110/month
- $3M: $115–$165/month
Female rates typically run 15–25% cheaper than male. Smokers can expect 2.5–4x these numbers. Every 5 years you delay, pricing climbs roughly 30%.
When to use a ladder instead of one policy
A 35-year-old with a newborn, a $450k mortgage, and $120k income probably needs $1.5M today but only $600k in 15 years once the mortgage is down and one kid is nearly through college. Buying a flat $1.5M 20-year term overpays for the back half.
Instead, ladder: $600k 30-year + $500k 20-year + $400k 10-year. Total Year-1 premium is often 15–25% lower than a single $1.5M policy, and coverage steps down naturally as needs shrink. The Life Insurance Ladder Calculator models this in seconds.
Stay-at-home parent coverage
If one parent is not working for pay, they still need coverage — usually $400k–$600k of 20-year term. The working parent doesn’t become a full-time parent overnight if tragedy strikes. You will pay for childcare, housekeeping, tutoring, and logistics. At $35–$55k/year of replacement services for 10–15 years, $500k is the honest number.
Most insurers require proof of household income and allow spousal coverage up to roughly 50–100% of the working spouse’s face amount. Skipping this policy is one of the most common mistakes underwriting-aware planners flag.
What the quiz doesn’t know
The quiz can’t see your health class. If you have managed hypertension, a past DUI, a family history of early-onset cancer, or are a private pilot, your preferred-rate price will be 1.5–3x the quotes above. Always pull real quotes through at least two independent brokers — Policygenius and one specialist (Crump, LBS, Quotacy) — before signing.
It also can’t know if you own a business with a buy-sell agreement, or carry student loan co-signer risk. Both of those push coverage higher and deserve a human planner’s eye.
Term first, permanent later (maybe)
For 90% of quiz-takers, a 20- or 30-year level term is the right answer. Permanent insurance (whole, universal, IUL) is worth considering only after you’ve maxed retirement accounts, have a taxable estate problem (>$13.6M in 2026), or specifically need lifelong coverage for a special-needs dependent.
If a sales agent opens with permanent on the first call, get a second opinion. The Term vs. Whole Life Comparison page runs the 30-year math so you can see the gap with your own numbers.
Next steps after the quiz
Print the PDF, then:
- Pull 3 quotes from independent brokers (Policygenius, Quotacy, your local indy). Use the exact face amount and term from the quiz.
- Disclose honestly on the application. Lies void coverage at claim time.
- Complete the medical exam quickly — rate locks usually expire in 60–90 days.
- Name a contingent beneficiary. Primary-only beneficiary designations create probate delays.
- Review coverage every 3 years or after any life event (child, home purchase, income jump of 25%+).
Circle back with the Coverage Gap Analyzer once policies are in force to confirm nothing slipped through.