Guide
How much life insurance do you need?
A calculator plus the method behind it: the income years concept, debts, schooling, and what is already in place.
The straightforward approach is to total what your income supports and then subtract what is already in place. The result is not exact, and it does not need to be: you buy term coverage in round increments, and the point is landing on a number that keeps your household stable during the critical years.
Coverage estimate
Formula: (income × years) + debts + education − existing coverage, then round to the nearest $5,000. This is your starting estimate, not financial guidance.
Why those inputs
Income years. Most planners suggest ten to twenty years of income protection, but the right length depends on how much your dependents rely on your income. Families with young kids in Pasadena typically choose the longer span because the costs of childcare, housing, and school all peak at the same time.
Debts. A mortgage represents the largest obligation for most families. If your coverage would pay it off, your survivors can then choose their own path rather than being forced by financial need.
Education. Add a rough figure per child using today's dollars. It is far easier to wrap it in now than to purchase a separate policy down the road.
What you have. Savings on hand and group coverage at work. Most people count only part of group coverage because it goes away when the job does.
Once you have a target amount, the quote tool displays what that amount costs for 10 to 30 years from each carrier. A common practice is to buy somewhat more than your estimate, since the monthly cost at younger ages is often quite small.