You have a new baby. Your spouse is staying home, or mostly home. You’re the one with the income, and you already know you need more coverage than you have. The question is how much, and whether you can get it done tonight without calling anyone.
You can. Let’s get to the math.
How to Think About the Number
There’s no formula that spits out the right answer, but there’s a framework that works for most situations like this.
Income replacement is the biggest piece. If you die, your spouse needs to replace your income for some number of years. The common rule of thumb is 10x your annual income. On $80,000 a year, that’s $800,000. On $120,000, that’s $1.2 million. That’s not a magic number. It’s a starting point.
The logic behind 10x: your spouse can invest the death benefit conservatively and draw it down at a reasonable rate for roughly two decades without depleting it. If your kids are young and your spouse has limited earning potential while they’re parenting, you want more runway, not less.
Add the mortgage if you have one. Some people separate this into a second policy. Most just fold it into the face amount. If you owe $350,000 on your house, add that to the number.
Subtract any existing coverage. If you have $100,000 through your employer group plan, take that off the top. But remember: if you change jobs, that coverage disappears. Don’t lean on group coverage for your core protection.
What Term Length Makes Sense
Most people in this situation are looking at 20 or 30 years.
20 years covers you until the youngest is roughly out of the house, assuming you have the baby now.
30 years gives you more runway and usually aligns with when the mortgage is paid off.
The monthly cost difference between 20 and 30 is real but not as dramatic as people expect, especially at younger ages. A healthy person in their mid-30s doesn’t pay twice as much for 30 years as for 20. It’s usually 30-40% more per month. For most people in this situation, the extra coverage period is worth it.
What the Application Will Ask
Simplified issue (no medical exam) asks about your health history in the application itself. The questions typically cover:
- Major diagnoses in the past 5-10 years (heart attack, cancer, stroke, diabetes)
- Hospitalizations or surgeries
- Prescription medications
- Height and weight
- Tobacco use in the past 12-24 months
If you’re a generally healthy person with no major history, you’ll move through this section without complications.
Weight is worth addressing. If your BMI is elevated, it doesn’t automatically disqualify you. It can affect your health class, which affects the rate. You might come out at standard instead of preferred. That costs more per month, but it doesn’t mean you can’t get coverage.
One thing I’ll flag directly: the application will ask about tobacco use. If you’ve had any tobacco use in the past 12 months, you’ll be rated as a smoker even if you consider yourself a former smoker. That affects the rate significantly. If you’re a year out, you’re likely fine. Under 12 months, expect smoker pricing until you hit that threshold.
Is Simplified Issue Right for This Situation?
If your coverage need is under $1 million, simplified issue is probably the right path. You can apply tonight, no exam required, and get an approval in days rather than weeks.
If you’re trying to cover 10x a $180,000 income plus a $500,000 mortgage, you’re looking at over $2 million in coverage. At that level, you’re generally better off with full underwriting. The rate difference at high face amounts is significant, and most simplified issue platforms cap coverage somewhere in the $1-1.5 million range.
For most people reading this – income between $70,000 and $150,000, mortgage in the $200,000-$500,000 range – the coverage need lands somewhere between $750,000 and $2 million. Simplified issue works well for the lower end of that range.
A Note on Stacking Policies
Some people in this situation get two policies instead of one. A $500,000 20-year policy to cover the mortgage, and a $500,000 30-year policy for income replacement. Two separate applications, two separate premiums.
This isn’t necessary, but it works. It can also let you ladder coverage if your income is higher and one simplified issue policy won’t cover the full amount.
Rates
For reference, rates shown on this site use a test profile: 41-year-old male, Texas, non-smoker, standard health (DOB 1984-10-07). Rates last updated 2026-05-29. I’ll update this section with current quotes after my next round on instabrain.io. Your actual rate depends on your age, health class, and the coverage amount you select.
The Application Takes About 15 Minutes
No exam. No agent call. No one is going to call you back three times to “just follow up.”
You fill out the application online, get a rate, and decide whether to finalize. I’m a licensed agent. When you apply through instabrain.io, I review it and submit. That’s the entire interaction unless you want more.
You’ve been meaning to do this for months. You have a specific reason now. Tonight is the right time.
If this situation sounds like yours, you can run your own quote and apply at instabrain.io. No agent call. No exam. I’m the licensed agent on the other side – you apply online, I review and submit.
Disclosure: I’m a licensed life insurance agent. Rates shown are test profile quotes (41yo male TX non-smoker standard health) and are not personalized advice. Your actual rate depends on your application. This is not a recommendation to buy or avoid any specific product.