Guide
How much life insurance do you need?
A tool to work through the math: the years of income you want to protect, your debts, education costs, and existing coverage.
The straightforward way is to add what your income would support, then subtract what you already have in place. It will not be exact, and it does not need to be: coverage is sold in round amounts anyway, and the goal is simply a number that keeps things stable through the years when your family would need it most.
Coverage estimate
Formula: (income × years) + debts + education − what you have, rounded to the nearest $5,000. This is a starting point to explore, not professional advice.
Why those inputs
Income years. Most advisors suggest 10 to 20 years of income protection based on how long your dependents will depend on you. Families in Santa Clara with small children often pick the higher end because childcare, school, and housing expenses stack up in the same years.
Debts. For most households, a mortgage is the biggest debt. Coverage large enough to pay it off gives your survivors the choice to stay or move without being forced into either decision by money.
Education. A rough amount per child, in today's money. It is simpler to add it to this policy now than to buy a second one later.
What you have. Savings you could use, and any group coverage from your job. Group coverage stops when you leave the job, so most people count only a portion of it.
Once you know the amount you need, the quote tool lets you see the cost for 10 to 30 years from each carrier. Many people buy more than their estimate because the extra cost per month is small when you are young.