Here's the honest answer: more than you think, and less than insurance companies want to sell you.
Most dads default to whatever their employer offers (usually 1-2x salary). That's a start, but it's typically not enough. If you make $80K and have a $300K mortgage, two kids, and a spouse who would need to cover childcare to keep working, 1x salary covers maybe a year. Then what?
There are three methods to figure out the right number. I'll walk through each, from simplest to most accurate.
Method 1: The 10x rule (quick and dirty)
Take your annual income. Multiply by 10. That's your baseline coverage.
Example: Dad earns $80,000/year
10x income = minimum recommended coverage
Pros: Simple. Gets you in the right ballpark. Better than having no coverage.
Cons: Doesn't account for mortgage, debts, college costs, or your spouse's income. Can underestimate or overestimate by $200-500K.
Method 2: The DIME method (more accurate)
DIME stands for Debt, Income, Mortgage, Education. Add them up, subtract what you've already saved, and that's your number.
This example dad needs about $1.8M in coverage. That's more than double the 10x rule suggested. The difference? The 10x rule missed the mortgage, debts, and college costs.
Method 3: Use the calculator (most accurate)
Our Life Insurance Calculator walks you through each variable — income, mortgage, debts, number of kids, spouse income, existing savings — and gives you a personalized recommendation with provider suggestions.
It takes about 3 minutes and gives you a number you can actually use when shopping for quotes.
Open the calculatorWhat type of policy should you get?
Term life. 20 or 30 years. That's the answer for 95% of dads in their late 20s to late 30s.
Term life costs $40-55/month for $1M in coverage for a healthy 32-year-old non-smoker. Whole life costs $400-600/month for the same coverage. The math overwhelmingly favors buying term and investing the premium difference.
Match the term length to your youngest kid's age. If your youngest is a newborn, a 20-year term covers them through high school. A 30-year term gives you a buffer through college. The longer term costs more per month but provides more runway.
The spouse question
If your spouse works and earns enough to cover basic living expenses, you may need less coverage. The key question: if you died tomorrow, could your family maintain their current lifestyle on your spouse's income alone?
If yes, you mainly need coverage for debts, mortgage, and future expenses like college. If no, you need enough coverage to replace the income gap for 15-20 years.
Don't forget: even if your spouse doesn't work, the childcare they provide has real economic value. If the stay-at-home parent died, the working parent would need to pay for childcare ($15,000-25,000/year per kid). Both parents should have coverage.
Your employer policy isn't enough
Most employer life insurance policies offer 1-2x your salary. That's a good start, but it has two problems:
- It's not portable. If you leave your job, you lose the coverage. Getting a new policy at an older age (or with new health conditions) costs more.
- It's not enough. Even 2x salary for our $80K example is only $160K. That's less than 10% of what the DIME method recommends.
Keep your employer policy (it's usually free or cheap). But supplement it with your own term policy that follows you regardless of where you work.
Bottom line: Use the DIME method or the calculator to get your number. Then go to our Best Life Insurance for Dads review and get a quote tonight. The whole process takes 20 minutes. You've been putting this off long enough.
Disclaimer: This content is for educational purposes only. We are not licensed insurance agents or financial advisors. Consult a licensed professional for personalized insurance advice. Coverage needs vary by individual situation.
