The right question isn't "do I have life insurance"
Most working people have some form of life insurance — through their pension fund, manager's insurance (bituach menahalim), or a policy they bought. The problem is that most people don't know how much they're insured for. And even fewer know whether it's enough.
Life insurance is meant to answer one simple question: if I die tomorrow, what will happen to my family? Everything else flows from that.
The three factors that determine the amount
1. Financial obligations
How much debt do you have? Mortgage, loans, credit? Any remaining debt needs to be covered. Otherwise your family inherits a legacy of debt.
2. Income that needs to be replaced
The common rule: cover 7–10 years of net income. If you earn ₪15,000 a month, that means ₪1.2–1.8 million. Yes, the amounts are high — and for good reason.
3. Who depends on you and for how long
Young children significantly increase the need. A 3-year-old depends on you for at least another 15 years. A 17-year-old — a year or two. The difference is enormous when calculating the amount you need.
💡 Quick calculation: debts + (monthly income × 96) + children's tuition = a reasonable starting point for the coverage amount.
The common mistake: relying only on the pension
The life coverage that comes with a pension fund is usually calculated as a percentage of salary — typically between 50% and 100%. That means someone earning ₪15,000 a month will get coverage of ₪150,000–180,000. Very far from the ₪1.5 million they need.
That gap — between what you have and what you need — is exactly what a standalone term life (risk) policy is supposed to cover.
When the situation changes
Your needs change over time. As the mortgage shrinks, as the children grow up, as your pension savings grow — the amount of insurance you need decreases. Many people keep paying for life insurance far larger than they need, simply because they never stopped to check.
Recommendation: review your coverage at every major life change — a birth, buying a home, a change in income.
Term life (risk): the cheapest insurance per shekel
Pure life insurance (risk) is a simple and usually inexpensive product — especially at young ages. A healthy, non-smoking 35-year-old man can buy ₪1 million in coverage for ₪80–120 a month. It's one of the most efficient coverages per shekel in the Israeli insurance market.
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