Income Multiplier Life Insurance Calculator

When a simple multiplier is useful, and its limits

The income-multiplier rule is the fastest way to a ballpark figure. It assumes that a lump sum of, say, 10× your salary can be invested to replace your income for long enough for your family to adjust. It is the cross-check most UK advisers run first.

Why 10× isn't one-size-fits-all. The right multiple depends on how many years of income your family needs. A 30-year-old with two young children and a large mortgage may need 12–15× to carry the household to the point the children are independent. A 55-year-old with a paid-off house and no dependants may need far less than 10×.

The limits. A multiplier ignores your actual debts, your mortgage size, existing cover, and your partner's income. Two people on the same salary can have very different real needs. Treat it as a sanity check, then size properly with DIME or Capital Needs Analysis.

Educational guide only, not financial advice.