Guide
How much life insurance do you need?
A tool to work through the calculation, plus explanations of each piece: how many years of income you want to replace, debts you want covered, education costs, and what you already have set aside.
A straightforward approach is to estimate what your income would support, then subtract what you already have in savings and existing coverage. You do not need to be exact—term policies come in round numbers anyway, and the goal is an amount that keeps your household stable through the years when money matters most.
Coverage estimate
A quick formula: (annual income × years of coverage needed) + outstanding debts + estimated education costs − current savings and coverage, then round to the nearest $5,000. This is a starting point to explore, not financial advice.
Why those inputs
Most advisors suggest between ten and twenty years of income coverage; the right choice depends on how long the people depending on you would need support. A household with young children often picks the longer end because costs for childcare, housing, and school are highest all at once.
Debts. For most families, a mortgage is the biggest debt. Having enough coverage to pay it off lets your family choose their next steps instead of being forced by financial pressure.
Education. Set aside a rough amount per child in current dollars. Including it now in your coverage amount is simpler than trying to add another policy later.
What you have. Include any savings you could draw on and any group coverage through an employer. Keep in mind that group coverage usually stops when you leave the job, so many people only count a portion of it.
Once you have a target amount, use the quote tool to see the cost of that coverage for different term lengths, from 10 to 30 years, from each carrier. Many people choose to purchase more than their estimate because the monthly premium increase is modest when you are younger.