When it comes to term life insurance — how much is enough?

I get this question all the time. It used to happen right after I introduced myself as a “life insurance expert.”

(That’s why I don’t anymore 😅)

Because the truth is — without a full fact-finding appointment where I learn your financial snapshot — there’s no way to give an accurate number.

And this past week, I got to witness exactly why through a real-life case. 👇

__________

Meet Mr. A.He’s the breadwinner, earning north of $100k/year. His partner makes about half of that. They have a 13-year-old daughter.

Mr. A wanted a policy that fits his budget, covers income replacement, and aligns with his long-term goals (10 + years). But since we just met, he was understandably cautious about revealing his full finances.

My mistake? I quoted him at the best possible health rate — a leftover habit from my MLM days 😅

Result: $50/month for $1 million in coverage (20-year term, with accelerated death benefit rider).

Here’s the kicker: When his health class came back not the best, his approved premium doubled — $98/month.

He wasn’t happy. He wanted to keep it at $50.

So I reran the numbers using his actual health rate:

• $50/month = $750k, 10-year term

• $61/month = $750k, 15-year term

• $61/month = $1 million, 10-year term

Now the question became: 👉 Do we risk the time, or the amount of death benefit?

Still, he wasn’t thrilled. He asked if we could drop coverage lower.

We could — $500k at ~$54/month — but here’s why I said maybe not the best idea.

If he passed away tomorrow…

💸 Income lost: ~$110k/year

👩‍👧 His partner’s income: $55k/year

🪦 Funeral cost: $6k–$9k

🏠 Remaining mortgage: still unknown at this point

According to livingwage.mit.edu, a single mom with one child in Florida needs $80,539/year before taxes — leaving her ~$25k short annually.

Even if she kept the house and they had ~$480k in savings after all costs after he passes, here’s how it’d play out:

• After 5 years → ~$355k left when their daughter turns 18

• College costs → $24k tuition + $64k–$96k living expenses

• Remaining in 2034 → ~$235k–$267k

And that’s before factoring in inflation, retirement, healthcare, or caregiving costs for his wife to carry on with her job and wages untouched. WITHOUT THERAPY – she’d better need none.

I finally asked him,

So what’s the takeaway from today’s story?

Until your life-insurance application is submitted and your health class is confirmed, there’s no accurate way to know your premium.

(This is a valuable lesson for me as an advisor as well: Find out what health rate the client is approved for first, then comes the quote and illustrations!)

And before choosing the amount or length of your coverage, a great advisor will ask the hard questions:

• How many dependents do you have?

• How much income must be replaced?

• What do you want to happen to your assets if you pass tomorrow?

Because these are questions most people don’t ask themselves…until it’s too late to get insured.

Isn’t that ironic?

— LTA