Guide
How much life insurance do you need?
A tool and the thinking behind it: how many years of income, debts, schooling costs, and what you already have.
The basic approach is to add your income's worth and then subtract what is already in place. It is not exact, and it does not need to be: you will buy coverage in round numbers anyway, and your goal is a figure that lets your household stay stable for the years that count.
Coverage estimate
Estimate = income × years + debts + education − what you already own, rounded to $5,000 increments. It is a starting place, not guidance.
Why those inputs
Income years. Planners generally suggest between ten and twenty years of income to use as a range, though the exact number depends on how long dependents would need support. Families in San Clemente with young children often lean toward the longer end due to the high cost of childcare, housing and education when kids are small.
Debts. A mortgage is usually the biggest one for families. Coverage large enough to pay it off gives survivors the option to stay in the home instead of being forced to sell.
Education. Include a rough allowance per child using today's costs. Putting it in now is less work than getting a second policy added later.
What you own. Money set aside and workplace life insurance. Keep in mind that job coverage usually goes away when you leave the job, so most people count only a portion of it.
Once you have a target amount, the quote tool lets you see what different terms cost from each carrier. Buying somewhat more than your calculation is common, especially at younger ages, because the monthly cost difference is often small.