Guide
How much life insurance do you need?
A tool and the thinking behind it: years of income replacement, handling debts, education planning and existing coverage.
A straightforward approach: combine what your earnings would replace, then subtract existing resources. It's not exact, and doesn't need to be: you buy coverage in round-dollar amounts, targeting a figure that would sustain your household through the critical years.
Coverage estimate
Quick formula: (annual income × years needed) + existing debts + education costs − current savings and coverage = estimate. Round to the nearest $5,000 as a starting point, not professional guidance.
Why those inputs
Income duration. Most professionals suggest replacing ten to twenty years of your salary; the exact amount depends on how long your family will need income support. Families with young children typically lean toward the higher end because school, housing and childcare expenses cluster together.
Debts. Mortgages top the list for most households. Coverage that would settle the mortgage lets surviving family choose their path without financial pressure forcing the decision.
School costs. Set aside a rough per-child amount in current dollars. Adding it now prevents needing another policy down the road.
What's already there. Savings you could tap, plus employer coverage. Since group plans usually stop when you leave the job, many people only count half of what they have at work.
Once you have your target, use the quote tool to see what that coverage costs for each term from each company. Many buyers purchase more than their initial estimate since the price increase is modest when you're younger.