Should I include stock options in my life insurance calculation?

Include vested stock value in your assets (reducing coverage need). Unvested RSUs are not guaranteed and shouldn't be relied upon for coverage calculation.

How does remote work affect my life insurance?

Remote work generally doesn't affect standard life insurance. Insurers care about your health and lifestyle, not your work location.

Do software engineers need more or less coverage?

Higher salaries mean higher coverage needs to replace income adequately. But tech professionals also tend to build assets faster, which can offset some coverage.

What about startup equity — should it affect my coverage?

Startup equity is illiquid and uncertain. Don't reduce coverage based on unvested or illiquid equity. Get coverage based on income and verifiable assets.

How do tech layoffs affect my insurance strategy?

Employer group coverage ends with employment. Personal life insurance is portable. Having personal coverage protects against loss of employer benefits.

I work for a FAANG company with great benefits — do I still need personal coverage?

Employer group life insurance (typically 1-3x salary) is portable only while employed. For income protection at 10-12x salary, personal coverage is essential.

Should a contractor vs. full-time engineer calculate differently?

Contractors lack employer benefits and may have variable income. Use your average annual earnings over 2 years and prioritize personal coverage.

How do I calculate coverage for a dual-income tech couple?

Calculate individually based on each person's income and the financial impact of losing each income separately. Both should be adequately covered.

Life Insurance Calculator for Software Engineers

Key Facts: Life Insurance for Software Engineers

Base salary plus bonus should be included in income calculations; unvested equity is optional

Tech professionals often accumulate significant assets early — coverage needs may decrease faster

Remote work across states may affect policy terms — clarify jurisdiction with your insurer

High income means a larger protection gap — underinsurance is more financially devastating

Why Software Engineers Need Specialized Life Insurance Coverage

Tech professionals often receive equity compensation — ensure stock options and RSUs are factored into total compensation for coverage calculation.

The average software engineer earns approximately $120,000 per year. Based on the standard 10x income recommendation, this means coverage of approximately $1,200,000 is the starting point — though individual circumstances can vary significantly based on debts, dependents, and existing assets.

Recommended Coverage

10-12x base salary

Based on profession-specific factors

Average Software Engineer Income

$120,000/yr