Guide
How much life insurance do you need?
A tool and the thinking behind it: income years, obligations, education costs and what you already have in place.
The standard approach is to total what your income would have provided and subtract what is already in place. This method is not perfect, nor does it need to be: term insurance comes in round amounts, and the point is reaching a figure that would keep your family stable through the critical years.
Coverage estimate
Rough estimate: (annual income × years of coverage) + debts + education costs − savings and existing coverage, rounded to the nearest $5,000. Use this as a starting point, not as personal guidance.
Why those inputs
Income years. Most insurance advisors suggest 10 to 20 years of income; the exact span depends on how long your dependents would need financial support. Many households with young children in Fullerton pick the longer end because childcare, housing and schooling costs stack up during those same years.
Debts. For most households, the mortgage is the biggest obligation. Coverage that would pay it off lets your family choose how to proceed rather than being forced by money constraints.
Education. A basic figure per child in current dollars. Putting a number here now is easier than buying a second policy later.
What you have. Savings set aside for emergencies, and any group coverage from work. Group coverage typically ends if you change jobs, so many people count only a share of it.
Once you have a target number, the quote tool displays what that amount costs from each carrier for 10-, 15-, 20-, 25- and 30-year terms. Buying a bit more than your estimate is typical since the monthly cost difference is small when you are younger.