Guide
How much life insurance do you need?
Our calculator and explanation of its components: the years to cover, current obligations, future education costs, and resources already available.
A straightforward approach involves summing your income-dependent liabilities and subtracting existing resources. Exactness matters less here since term amounts are rounded and the aim is stability during critical years.
Coverage estimate
Estimate = income × years + liabilities + schooling costs − existing coverage, rounded to the nearest $5,000. Think of this as your starting estimate, not personalized guidance.
Why those inputs
Income years. Financial planners typically recommend 10 to 20 years of replacement income; your ideal term depends on your dependents' support duration. Brea families raising young children commonly select longer periods since childcare, housing, and schooling expenses overlap.
Debts. Most households carry a mortgage as their largest debt. Selecting coverage that would satisfy it enables your heirs to make their own choice about remaining in the home rather than being forced by financial constraints.
Education. Set aside an approximate amount per child, calculated in current dollars. Factoring this in now beats purchasing supplemental coverage afterward.
Existing coverage. Bank accounts with available funds and employer-sponsored plans both count. Since group coverage generally ends when employment ends, many applicants factor in only a fraction of it.
Once you determine your target amount, the quote tool lets you examine pricing for 10-year through 30-year terms across all carriers. Many people increase their estimate slightly because costs are minimal at younger ages.