Guide
How much life insurance do you need?
A tool and the rationale behind it: the years your dependents would rely on your earnings, amounts owed, costs for education, and resources already in place.
The straightforward approach: tally your income-replacement needs, subtract existing protections, and round up to a convenient number. This doesn't require precision—term insurance comes in round denominations anyway—the aim is ensuring your household stays stable through the years when it most depends on your income.
Coverage estimate
Estimate = (annual income × years of support) + outstanding debts + education costs − existing savings and employer coverage, then round to the nearest $5,000. This is a starting reference point, not financial advice.
Why those inputs
Income years. The standard range is ten to twenty years; selection depends on how long your dependents need financial support. Households with young children in Monterey typically favor the longer timeframe because the expenses—childcare, rent or mortgage, school costs—overlap significantly.
Debts. Most households carry a mortgage as their largest financial obligation. Coverage sufficient to pay off this debt gives your family choices rather than forcing a decision based on available cash.
Education. Set aside a realistic figure per child based on current costs. It's smarter to include this now than to purchase another policy layer down the road.
What you have. Liquid savings set aside for emergencies, plus job-related coverage. Since employer-sponsored coverage typically ends when employment does, most people count only a fraction of that benefit.
Once you've determined your target amount, the quote tool lets you see the monthly cost across 10, 15, 20, 25 and 30-year options from each carrier. It's common to increase your initial estimate slightly since the per-month cost at younger ages is often quite reasonable.