Guide
How much life insurance do you need?
A tool for estimation using four elements: future income, outstanding debts, education goals, and current assets—all adding up to a ballpark number.
The typical approach: add what your income was going to earn, add the big debts, add your education goals, then subtract what's already saved.
Coverage estimate
Estimate = (monthly income × years you want covered) + debts + education savings − what's already in savings, rounded up to the nearest $50,000.
Why those inputs
Income years. Most families cover between ten and twenty years of earnings. Some choose longer; most don't go shorter.
Debts. For most families, the biggest obligation is the home loan. Insurance large enough to pay it off means your family isn't forced to sell.
Education. Set aside a rough cost per child at today's prices. That number will probably be higher by the time they go to college.
What you have. Add up your liquid savings and any group insurance your job or an organization gives you that would kick in.
Once you pick an amount, the quote tool shows you what the big term life carriers in California would charge.