---
title: "What Is Income Replacement? Definition | Epic Life Glossary"
description: "Income replacement is the goal of buying life insurance to replace the earnings a family would lose if the insured died. It is often a multiple of..."
url: https://epicline.preview.multisites.ai/glossary/income-replacement
publisher: Epic Life Group
apply: https://epicline.preview.multisites.ai/apply
quote: https://epicline.preview.multisites.ai/get-a-quote
---

Consumer pricing and coverage concepts

# Income Replacement

Income replacement is the goal of buying life insurance to replace the earnings a family would lose if the insured died. It is often a multiple of annual income.

## Why it matters

A common rule of thumb is 10 times income, though needs vary. Younger families with children and a mortgage often need more. Term life is common for this goal because it is affordable for large amounts. A needs analysis gives a better figure than a rule of thumb. Use it as a guide.

Source: [iii.org](https://www.iii.org/article/how-much-life-insurance-do-i-need)

[Read next, for familiesTerm life insurance: how it works, what drives price, and when it ends](https://epicline.preview.multisites.ai/life-insurance/term-life)

## Where we use this term

-   [Mortgage protection vs term life vs PMI: who does each one protect?](https://epicline.preview.multisites.ai/guides/mortgage-protection-vs-term-life-vs-pmi)
-   [How much does life insurance cost, and what drives the price?](https://epicline.preview.multisites.ai/life-insurance/cost)
-   [Life insurance for seniors: what you can get at 50, 60, 70, and 80](https://epicline.preview.multisites.ai/life-insurance/seniors)

## Talk to a licensed agent.

Tell us what you need and request a call from a licensed Epic Life agent who compares carriers.

[Get a quote](https://epicline.preview.multisites.ai/get-a-quote)

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