How much life insurance do I need?
Add up what your family would need if you died: the mortgage and debts cleared, your income replaced for a number of years, and other costs. Then take off what is already there.
How this is calculated
The need is the mortgage and other debts, plus the yearly income to replace multiplied by the number of years, plus funeral and other costs.
Savings, investments and any existing life cover are then taken off, because they would already be there.
The income is in today's money and is not adjusted for interest or inflation, so treat the figure as a starting point for comparing quotes.
Rates used · 2026/27
| Level term | fixed payout for a set term |
| Decreasing term | payout falls, often matched to a repayment mortgage |
| Increasing term | payout rises to keep pace with prices |
| Death in service | usually ends when you leave the job |
Last checked July 2026. Source: HMRC and gov.uk.
Worked example
Clearing a £180,000 mortgage and £5,000 of other debt, replacing £25,000 a year for 18 years and allowing £5,000 for a funeral comes to £640,000. Less £20,000 of savings, the cover needed is about £620,000.
Common questions
How much life insurance do I need?
Enough to clear what your family would owe and replace the income they would lose, less what is already in place. The calculator adds those up for you.
Do I need life insurance if I have no dependants?
Often not. Life cover protects people who rely on your income or would inherit your debts, such as a partner on a joint mortgage.
Should the policy be written in trust?
Usually yes. A policy in trust pays out faster and normally falls outside your estate for inheritance tax. Insurers provide the forms free.
What about critical illness cover?
That pays out on diagnosis of a listed serious illness rather than death. It is separate cover, often added to a life policy.