Guide
How much life insurance do you need?
A calculator and explanation: how to estimate income years, handle debts, account for education costs, and factor in coverage you already own.
Add up what you earn across a typical year and multiply by the number of years you want protection, then subtract what is already in place. It does not have to be exact because term policies are sold in increments, and the goal is a comfortable amount for your family's needs.
Coverage estimate
Estimate = annual income × desired years + major debts + education budget − existing coverage, rounded to the nearest $5,000. This is a starting point for comparison, not financial or insurance advice.
Why those inputs
Income years. Most financial advisors suggest ten to twenty years of income replacement; the exact number depends on how long your dependents will need financial support. Families in Anaheim with young children tend to select the longer end of this range because the years when childcare, housing and tuition costs peak overlap.
Debts. The biggest debt for most families is a mortgage. If you carry a significant balance, coverage equal to that amount gives survivors the option to keep the home without an immediate sale.
Education. Set aside a rough amount per child in current dollars. Including this now means you do not need a separate policy purchase later on.
What you have. Bank balances that could be drawn down, and employer-provided death benefit coverage. Keep in mind that group insurance from your job goes away when employment ends, so plan conservatively if that is part of your total.
Once you know your target amount, the quote tool compares costs across 10, 15, 20, 25 and 30-year terms from every carrier. It is common to choose a benefit slightly larger than your estimate because the monthly cost difference is often minimal at younger ages.