Guide
How much life insurance do you need?
Use this calculator to work through the components: how many years of income, your debts, education costs, and what coverage you already own.
A straightforward approach: total up the income your household would have needed and subtract any savings or existing coverage you already own. Exact precision isn't required—coverage is purchased in round dollar amounts anyway—and your target should be enough to maintain your household's stability through the critical years.
Coverage estimate
Try this formula: (annual income × years needed) + outstanding debts + education costs − existing savings and coverage, then round to the nearest $5,000. This is a starting estimate, not personalized financial advice.
Why those inputs
Income years. Most advisors suggest ten to twenty years as a target; what works for you hinges on how long support is actually needed. Families with young children in Placentia frequently lean toward the higher end, since expenses for care, housing and education all cluster together during those same years.
Debts. For most families, a mortgage is the biggest debt. Coverage large enough to pay it off in full gives your survivors the choice to stay or move, rather than forcing a decision based on immediate financial pressure.
Education. Set aside a rough amount per child in today's dollars. It's more practical to build this in now than to purchase additional coverage later.
What you have. Count your accessible savings and any group coverage your employer offers. Keep in mind that employer-based coverage typically ends if you leave that job, so many people include only a portion of it in their calculations.
Once you know your number, the quote tool will show you the monthly cost for 10-, 15-, 20-, 25- or 30-year terms across multiple carriers. Many people buy a bit more coverage than their estimate suggests, since the monthly cost difference is often minimal when you're younger.