Guide
How much life insurance do you need?
A tool to calculate your coverage need, and an explanation of each factor: income years, debts, education, and existing protection.
The most common approach is to total what your income would have provided for and then subtract what is already protected. It will not be exact, and it does not need to be: term insurance is purchased in round amounts, and the aim is a number that would sustain your household through the years when it would struggle most.
Coverage estimate
Estimate = income × years + debts + education − what you already have, rounded to the nearest $5,000. This is a starting point for your thinking, not professional advice.
Why those inputs
Income years. Financial advisors typically estimate ten to twenty years of income replacement as the target, though the right duration depends on when your dependents would need to be supported. In Oakland, families raising young children frequently select longer coverage because childcare, housing, and school expenses arrive all at once.
Debts. For most households, a mortgage is the biggest financial obligation. Enough coverage to pay it off gives your family the choice to stay in your home without being forced by cash flow to move.
Education. Set aside an estimate per child in today's dollars. It is simpler to include it in your initial policy than to try to add more later.
What you already have. Count liquid savings you could use, and group life coverage offered through your job. Group coverage usually ends when employment ends, so many people include only a fraction of it.
Once you know how much coverage you need, the quote tool displays what that amount costs across 10, 15, 20, 25 and 30-year terms from each carrier. Many people choose to buy more than their estimate suggests because the monthly premium difference is modest when you are younger.