How Much Life Insurance Do You Need? An Income-Replacement Worksheet for Florida Families
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In the 2026 Insurance Barometer study by LIMRA and Life Happens, 47% of adults said they would have trouble paying living expenses within six months of their primary wage earner’s death, and only 29% said they would stay financially secure for more than two years (LIMRA). More than half (54%) said their family would rely on life insurance. Yet nearly a quarter of Americans say they haven’t bought life insurance because they don’t know how much they need or what type to buy.
This worksheet is a starting point. It takes about ten minutes.
Step 1: The income your family would lose
Write down your yearly take-home pay and the number of years your family would need it: until the youngest child finishes school, or until your spouse reaches retirement. Multiply the two.
Step 2: The big bills that would not stop
- The mortgage balance, or several years of rent.
- Other debts: car payments, credit cards, medical bills.
- Childcare and college you want to cover.
- Final expenses.
Step 3: What you already have
Subtract existing life insurance, including coverage through work. Nearly half of people with life insurance have it through their job (LIMRA), and that coverage may end or change when you leave. Subtract money and investments your family could use.
An example, not a recommendation
A parent takes home $55,000 a year and wants to cover 12 years: $660,000. Add a $200,000 mortgage balance and $40,000 for college and final expenses: $900,000. Subtract $110,000 of coverage through work and $30,000 set aside. The gap is about $760,000. Your own numbers will be different.
Step 4: Don’t forget the parent at home
A stay-at-home parent has no paycheck, but replacing childcare, driving and running the household costs real money. Many families size a policy for that parent too.
Florida rules worth knowing
- When a Florida resident dies, life insurance paid to a named beneficiary goes to that person and is generally protected from the insured’s creditors; if it is payable to the estate, it becomes part of the estate (s. 222.13). Keep beneficiaries current.
- For a policyholder 64 or older whose policy has been in force at least a year, a secondary person can be named to receive notice, and the insurer must mail notice at least 21 days before a lapse for nonpayment (s. 627.4555).
Do the math with us
Use the calculator on our Florida life insurance page, then talk to a licensed agent about the amount and type that fit your family.
This is general information. Coverage, terms and eligibility depend on the policy and underwriting.
Frequently asked questions
How much life insurance do I need?
A common way to estimate it: the years of income your family would need, plus the mortgage, debts, childcare, college and final expenses, minus the coverage and assets you already have. The result is a starting point to review with an agent.
Is life insurance through work enough?
Often not. It is usually a set amount, and it may end or change if you leave the job. Nearly half of people with life insurance have it through work, according to LIMRA.
Does a stay-at-home parent need life insurance?
Many families think so, because replacing childcare and the work of running a home costs money even though there is no paycheck to replace.
Who should I name as beneficiary?
Name a primary and a backup beneficiary and keep them current after marriage, divorce or a birth. In Florida, proceeds paid to a named beneficiary are generally protected from the insured’s creditors, while proceeds payable to the estate become part of the estate.
This article is general information, not legal advice or policy language. Coverage depends on the terms, limits and exclusions of your policy, and eligibility rules can change. Talk with a licensed agent about your situation.
Sources
Facts checked against these official sources on October 3, 2026.