Guide
How much life insurance do you need?
A calculation tool and explanation of the method: how many years of income to replace, handling debts, budgeting for education, and accounting for coverage you already own.
Add up the total years of income you want to replace, plus any major debts, plus education costs, then subtract any existing coverage. This does not need to be exact—term policies are sold in round numbers anyway, and the goal is an amount that keeps your household secure through the years when your income matters most.
Coverage estimate
Estimate = (annual income × years needed) + major debts + education costs − existing coverage, rounded to the nearest $5,000. This is one approach, not a recommendation from us.
Why those inputs
Income years. Most financial advisors suggest covering 10 to 20 years of income replacement, though the optimal duration depends on how many years your dependents will require support. Families in San Dimas with young children typically select toward the higher end of this range since childcare, housing, and education costs cluster in the same years.
Debts. A home mortgage is typically the biggest debt most families carry. Life insurance that would cover it gives your family the choice to stay in your home without having to move or sell due to cash flow pressure.
Education. Include a ballpark amount per child in current dollars. It is more convenient to plan for it now than to purchase additional coverage later.
What you have. Existing resources like savings or emergency funds, plus any life coverage offered by an employer. Employer coverage typically terminates when employment ends, so most people factor in only a portion of it.
Once you have an estimate, the quote tool lets you see the monthly cost of that coverage across 10, 15, 20, 25, and 30 year terms from all available carriers. Many people choose to buy more than their initial estimate because the extra monthly cost is modest when you're younger.