How to Calculate Your Coverage: A Truck Driver’s Guide
All right, so let’s break down something most folks avoid because it sounds complicated: how to calculate the right amount of life insurance coverage. But if you’re a truck driver—especially an owner-operator—this is a decision that affects your family, your rig, and your legacy.
Think about it like this: when you die, someone else has to carry the weight of everything you were responsible for. That includes the truck note, mortgage, household bills, business loans, and final expenses. The purpose of life insurance isn’t just a lump-sum check—it’s a financial strategy to replace the income and protection you provided every day.
Step 1: Add Up Your Debts
Let’s start with the basics. Make a list of everything that would still need to be paid if you weren’t around:
- Truck loan balance
- Mortgage or rent
- Credit card balances
- Business-related debt (fuel card balances, trailer payments, etc.)
- Any personal loans or co-signed obligations
So if your truck loan is $40K, mortgage is $180K, and you’ve got another $20K in credit cards and personal loans, that’s already $240,000 your family would be left trying to juggle.
Step 2: Income Replacement (The Heart of It All)
Here’s where most folks underestimate what they’re worth. You need to calculate how many years your family will need to replace your income.
If you’re making $85,000 a year running your lanes, and you want your family to be okay for at least 10 years, that’s $850,000 right there. Add that to the debt number above, and we’re already at over $1 million in coverage—and we haven’t even factored in final expenses yet.
This is the core of life insurance for truckers: your rig might stop running one day, but the bills won’t.
Step 3: Add Final Expenses
You want to make sure your family doesn’t have to set up a GoFundMe just to bury you. Final expenses usually include:
- Funeral service and burial (average is $10,000–$15,000)
- Travel or hotel costs for out-of-town family
- Legal or probate fees if there’s an estate involved
A safe estimate? Add $20,000 for final expenses just to keep things from falling apart emotionally and financially.
Step 4: Adjust for Your Situation
Now that you’ve got your baseline total, consider other situations:
- Do you have young kids? You might want to extend the income replacement years.
- Do you lease or own your truck? That affects how much debt would remain.
- Do you have a spouse who works? That may lower (or increase) the years of needed income.
Debts + Income Replacement + Final Expenses = Your Life Insurance Coverage Amount
This isn’t about fear—it’s about clarity. You don’t have to guess anymore.
Real-World Tools to Make It Easy
To make this easier, I’ve got a free download that walks you through it step-by-step:
👉 How Much Is Enough Life Insurance? – Truck Driver’s Guide
Print it out, fill in the blanks, and you’ll have a personalized number by the time you’re done with your coffee.
Legal Protection for Trucking Business Owners
If you’re running your own trucking business or side hustle, legal protection is just as critical. You need to make sure your family isn’t stuck in legal limbo if something happens to you.
👉 Download: Legal Protection Guide for Small Business Owners
This guide covers basic legal protections every trucker should know if you’re operating as a sole proprietor, LLC, or anything in between.
Why This Matters for Owner-Operators
If you’re an owner-operator, this is even more urgent. Your business is tied to your name, your hustle, and your equipment. If you disappear, there’s no HR department stepping in. Life insurance is your personal safety net for the people you love.
And when it’s structured right, it can also be used to:
- Pay off the truck so it can be sold or kept
- Cover household expenses while your family gets back on their feet
- Provide peace of mind that everything won’t fall apart financially
Extra Resources You Can Trust
And of course, if you’re serious about protecting your family and want personal help:
- ✅ Join the Blast Crew to get tools like this sent straight to your inbox.
- 📅 Book a Free Zoom Call if you’re ready to figure this out with me one-on-one.
Your family deserves more than hope. They deserve a plan. Let’s get it done.
