How much life insurance does a Texas family need?

Texas families should carry at minimum 10× their annual household income. With the average Texas household income around $73,000, that points to $730K–$900K in coverage. Add your mortgage balance on top of that. Families with children in the home should add $120,000 per child to cover potential education costs.

What is the DIME method for calculating life insurance?

The DIME method is the insurance industry's standard formula: Debt (all loans except mortgage) + Income (annual earnings × years of replacement needed, typically 10) + Mortgage (remaining balance) + Education ($120,000 per child for in-state college). Add all four numbers, then subtract any life insurance you already own. The result is your coverage gap.

How much does life insurance cost per month in Texas?

A healthy 35-year-old in Texas can get a $500,000 20-year term life policy for $20–$35/month. A $1,000,000 policy runs roughly $35–$60/month for the same profile. Rates vary by age, health class, tobacco use, and the carrier. Tower Hill compares 30+ A-rated carriers to find your lowest rate.

Can I get life insurance in Texas without a medical exam?

Yes. Most Tower Hill applicants receive a coverage decision in minutes using accelerated underwriting — no blood draw, no nurse visit. You answer health questions online and get an instant decision. Coverage amounts up to $1,000,000 typically qualify. Complex health cases or very high coverage amounts may require a brief phone interview.

Term life vs whole life — which is better for Texans?

For most Texas families under 50, a 20- or 30-year term policy delivers the most protection per dollar spent. Whole life is better suited for estate planning, business succession, or permanent coverage needs. A 35-year-old can get $500,000 in term coverage for about what they'd pay for $50,000 in whole life — 10× more protection for the same premium.

5-minute coverage assessment

How Much Life Insurance
Do I Actually Need?

Q: How much life insurance do I need?

Most financial advisors recommend 10–12× your annual income in life insurance coverage. A 35-year-old earning $75,000/year with a $250,000 mortgage and two dependents typically needs $1M–$1.2M in coverage. Use the DIME method: add your Debt, Income replacement (×10), Mortgage balance, and Education costs for each child, then subtract any existing coverage.

Five questions. One number. Powered by Zenith OS — the coverage intelligence engine built for Texas families.

Quick Answer

How much life insurance do I need?

Most Texans need 10–12× their annual income in life insurance. Add your mortgage balance, then subtract any coverage you already own. A $75,000/year earner with a $250,000 mortgage and two kids typically needs $1M–$1.25M in coverage.

The DIME Formula

DebtAll loans (not mortgage)

IncomeAnnual income × 10 years

MortgageRemaining home loan balance

Education$120K per child

Subtract any existing coverage you own. Use the calculator below for your exact number →

What's your primary goal?

This shapes everything — choose the one that fits best.

The Right Way to Calculate Life Insurance Coverage

Most Texans use the "10x income" rule of thumb, but it's notoriously inaccurate. A 35-year-old with two children, a $300,000 mortgage, and no other coverage needs far more than 10× their salary. Zenith OS calculates your actual coverage gap — not a rough approximation.

The DIME Method (What We Use)

The DIME formula — Debt, Income, Mortgage, Education — is the industry standard for calculating life insurance needs. We add a fifth factor: existing coverage. Your recommendation accounts for all five.

Debt:All outstanding loans excluding mortgage
Income:Annual earnings × years of replacement needed
Mortgage:Remaining balance on your home loan
Education:$120,000 per child for in-state college costs
Existing coverage:Subtract what you already own

Term vs. Permanent: Which One?

For most Texas families under 50, a 20- or 30-year term policy provides maximum protection at the lowest cost. Whole life and universal life make sense for estate planning, business succession, or when you need coverage for life — not just during your highest-earning years.

The Zenith OS engine evaluates your goal (income replacement, mortgage protection, legacy, or final expense) and recommends the product type that matches — not just the cheapest option.