Guide

How much life insurance do you need?

A coverage calculator with explanations of the factors that go into it: how many years of income to replace, major debts, education funding, and existing coverage.

A straightforward approach: total what your income supports, then subtract savings and existing insurance already in place. The math doesn't need to be exact because life insurance comes in round dollar amounts anyway. The real goal is picking an amount large enough to sustain your household during the years when dependents need you most.

Why those inputs

Income years. Financial advisors typically recommend coverage for somewhere between ten and twenty years of earnings. The specific span depends on how many years your dependents will need financial support. Families raising young children in National City tend to go with the higher end of that range since costs for childcare, housing, and school all happen during the same period.

Debts. For most households, a mortgage represents the biggest financial obligation. If coverage is large enough to pay it off, survivors have the freedom to make their own choice about staying rather than being pressured by money concerns.

Education. A per-child amount in current dollars covers the cost of education if needed. Factoring this in now is simpler than buying additional coverage afterward.

What you have. Savings available to draw on and any group coverage your employer offers. Remember that group coverage typically stops if you leave that job, so it may be wise to count only a portion of it toward your total protection.

Once you've settled on a coverage amount, the quote tool displays the monthly cost for 10-, 15-, 20-, 25-, and 30-year terms from multiple carriers. Many people choose an amount slightly above their estimate since the added cost per month is often modest when you are younger.