Term Life for Income Replacement

Income pays for more than bills. Explore how term life insurance can help provide a financial cushion for the people relying on your future earnings.

The planning principle

Income replacement is one of the central uses of term life insurance. The appropriate amount depends on household obligations, dependents, existing assets and the number of years financial support may be needed.

What to review

Consider mortgage and debt, childcare, education goals, survivor income, existing coverage and liquid assets rather than relying on a single income multiple.

Reference points

• Income horizon: estimate how many years surviving household members would depend on the insured income.
• Major obligations: include mortgage, debt, childcare and education goals where appropriate.
• Available resources: subtract relevant liquid assets and existing life insurance rather than duplicating protection.
• Inflation and change: future household expenses and income needs may differ from today, so coverage should be reviewed periodically.

Educational information only. This page is not tax, legal, investment, or individualized insurance advice. Insurance products are subject to eligibility, underwriting, carrier availability, policy terms and state requirements.