Your Income
- Zach Santmier
- 5 hours ago
- 3 min read
Last week, we spent time talking about firming up your financial foundation with adequate insurance. Today, I want to talk about a policy that is the most important that fits right into that foundation, but often gets pushed aside or misunderstood: life insurance.
Let me say this upfront — life insurance isn’t about death. It’s about life. It’s about the people who depend on you and the income you provide right now and the amazing life you have built for them. Often, people will tell us, “I don’t want my family to be rich or have an incentive to get rid of me!” And though this is a funny way of deflecting, your family who relies on your income really appreciates how hard you work and the life you have allowed them to be able to live.
Most people are actively saving for retirement. They’re doing the right things — contributing, planning, thinking long-term. But here’s the uncomfortable question most people don’t like to ask: What happens financially to your family if you or your spouse were to pass away before that retirement plan is fully funded?
Life insurance can’t replace you. No policy can do that. But it can replace the financial you.
The easiest way to understand life insurance is to think of it as a bridge. It’s a bridge from today to the point in time when you’ve saved enough that your family would be financially okay if you were no longer here. And just like a real bridge, it has two critical components: length and height.
The length of the bridge is time. How long do you need protection? We typically recommend term life insurance — coverage for a specific number of years. That might be 10, 20, or even 30 years. The idea is simple: you don’t need a permanent bridge. If you believed you’d never have enough saved for retirement, then maybe you would want a permanent solution . But I believe you’re making progress. I believe you’re saving and investing. So you don’t need a bridge forever — you just need something to bridge the gap.
If you’re 10 years away from a fully funded retirement, you need a 10-year bridge. If you’re 20 years away, you need a 20-year bridge. That’s the length.
The height of the bridge is about income. How much do you provide for your family today? And how much would they need if that income suddenly disappeared?
Let’s say someone makes $100,000 a year. How high does that bridge need to be to replace that income? A common rule of thumb is 10 times income — but that assumes a consistent 10% return in the market, year after year, without touching the principal. That’s a tough guarantee.
If the surviving family ever has to dip into the principal, they’re putting a clock on how long that money lasts. And if retirement was still 20 or 30 years away, that’s a problem.
That’s why we usually recommend a more conservative approach — closer to 20 times income, assuming a 5% return. It gives families more stability, more margin, and more peace of mind.
What matters most isn’t perfection. It’s affordability and intention. Somewhere between 10 and 20 times income is appropriate for most families.
For many people, the ideal solution is a 20-year term policy at 20 times income — a bridge that’s long enough and tall enough to protect the people they love while they continue building their financial future.
Because the goal isn’t fear. The goal is confidence — knowing that no matter what happens, your family has a solid foundation beneath their feet as you work hard to save for retirement.
Zach Santmier is the owner of Trumble Agency, Inc. and the author of the personal financial course, Increase. He focuses on helping families escape paycheck to paycheck living so they can freely pursue their ideal future.