Guide
How much life insurance do you need?
A tool plus explanation: how to think about income years, outstanding debts, education costs, and assets you already own.
A straightforward method: total the income you would have earned during your family's dependent years, subtract existing resources, and subtract any debts. It is not a precise calculation—term insurance is sold in round numbers anyway—but it gets you to a reasonable target for your situation.
Coverage estimate
Estimate = earnings available during dependency years + extra for education + existing debts minus current resources, rounded to the nearest $5,000. This gives you a starting point, not financial or legal guidance.
Why those inputs
Income years. Most advisors recommend ten to twenty years as the span during which dependents need financial support. Your specific timeframe reflects your dependents' ages and circumstances. Many Orange County families with young children select the longer end given the overlap of childcare, housing, and schooling costs.
Debts. Most families carry a home loan, typically the single largest obligation. If the debt remains after your death, it may force difficult financial decisions on your family. A life insurance benefit that would satisfy the debt gives your family freedom of choice.
Education. Budget a reasonable sum per child in current dollars for college or vocational training. Including an education allowance now prevents the need to buy additional coverage later.
What you have. Include liquid assets available to your family and employee group coverage. Note that employer coverage typically terminates when employment ends, so many people assume they can count on only part of it.
Once you have calculated your coverage need, the quote tool displays the monthly cost for your chosen amount across term lengths of 10, 15, 20, 25, and 30 years. Most people discover that increasing coverage by a modest amount adds very little to the monthly bill when applied at younger ages.