Guide
How much life insurance do you need?
The tool includes a worksheet plus explanations for each component: how many years of income, major financial obligations, education reserves and existing coverage.
The straightforward approach: total your current income plus expected expenses, then subtract existing resources. While not an exact science, term policies are purchased in round dollar amounts, so the goal is simply a workable number that covers your household's critical years.
Coverage estimate
Start with income × duration needed + major financial obligations + education costs − resources already in place, then round to a convenient number like $250,000 or $500,000. This is a starting estimate, never advice.
Why those inputs
Income years. Most insurance professionals suggest between 10 and 20 years of income, with the specific duration based on when your dependents would require support. Families with young children in Beverly Hills frequently select 20 or 30 years since housing, childcare and school expenses all peak in the same period.
Debts. For most households, this means their home loan. A benefit amount sufficient to settle the mortgage gives surviving family members the freedom to stay or move based on their own choice rather than being forced by financial pressure.
Education. Set aside a rough amount per child in today's terms. Including this now simplifies planning compared to buying an additional policy later.
What you already have. This includes savings available for spending and any group policy through an employer. Group coverage usually terminates when your job ends, so many people account for only a fraction of it.
Once you've settled on a figure, the quote tool will display the monthly cost from each carrier across 10, 15, 20, 25 and 30 year terms. Applicants often choose slightly higher amounts than their calculation because the added premium per month is modest when you're younger.