Guide
How much life insurance do you need?
A tool to help you work out an appropriate coverage amount, with the reasoning for each component.
Add up what you want covered, subtract what's already in place. The math doesn't require precision—term policies come in round dollar amounts anyway—so a rough calculation is fine.
Coverage estimate
Start with what you want to protect: your income over time, major debts like mortgages, kids' education, existing savings and workplace benefits. Combine these pieces, round to $5,000, and you have a ballpark figure.
Why those inputs
Income years. Most financial planners suggest purchasing coverage for ten to twenty years of income, depending on when your dependents will become independent. In Walnut Creek, families with young children often lean toward the longer timeframe because the years when childcare and education expenses peak overlap with school-age years.
Debt payoff coverage. Most families carry a primary mortgage. With enough death benefit to settle it, survivors have freedom—keep the home if they want, sell to downsize, or relocate—without financial distress forcing the decision.
Education reserve. Set aside an allowance now for each child's schooling in today's money. Planning it upfront beats trying to get a second policy later to cover what you missed.
Existing protection and assets. Include any money you've saved that could cover expenses plus any workplace death benefit. Note that group plans typically end when employment ends, so factor in a partial value.
Once you have a number in mind, use the quote tool to see what different term lengths (10 to 30 years) cost with each carrier. Slightly more coverage than your estimate is common—the monthly difference is small when you're young.