Guide
How much life insurance do you need?
A tool and explanation for determining your coverage goal, considering your income period, outstanding obligations, education expenses, and existing coverage.
The standard approach: calculate how many years of your income your family would need, add obligations like debts and education costs, and subtract whatever you already have in savings or group coverage. Precision is not required—term insurance is sold in round increments, and the objective is simply to pick a figure that prevents financial strain during the critical years.
Coverage estimate
Quick formula: (annual income × number of years) + outstanding debts + estimated education costs − existing savings and group life coverage = your rough target. Round to the nearest $5,000. This is a starting figure for comparison, not personalized financial advice.
Why those inputs
Income years. Most financial advisors recommend coverage for 10 to 20 years of income, with the appropriate length depending on when dependents will be self-supporting. Families raising young children often select the longer end of the range because childcare, housing, and education costs all peak during the same years.
Debts. Mortgages represent the biggest obligation for most households. Setting coverage high enough to pay off the mortgage gives survivors the freedom to make their own choices about staying or moving without being forced by financial pressure.
Education. Include a rough per-child estimate in today's dollars for college or vocational costs. It is simpler to account for this amount upfront rather than purchase additional coverage later to fill the gap.
What you already have. Liquid savings available for emergencies and group life coverage through your employer. Note that employer-sponsored coverage typically terminates when you leave the job, so many people include only a portion of it in their calculation.
Once you have settled on an amount, use the quote tool to see what different carriers will charge for that coverage across 10-, 15-, 20-, 25-, and 30-year terms. Many applicants choose slightly higher coverage than their estimate suggests, since the monthly cost difference is often modest for younger ages.