Guide
How much life insurance do you need?
Interactive tool plus explanations: how to think about coverage years, debts outstanding, education funding and existing protections.
The standard calculation subtracts your existing protection from the total coverage your income would ideally supply. This isn't a precise science and needn't be: coverage amounts are selected in increments of $5,000 or greater, targeting a range that maintains your family's quality of life through the critical years.
Coverage estimate
Estimate = income × coverage years + total debts + education costs − current insurance holdings, rounded to nearest $5,000. This is a preliminary figure, not a recommendation.
Why those inputs
Income coverage period. Most professionals suggest selecting coverage for between 10 and 20 years depending on how extended your loved ones' financial dependence may be. In Rosemead, families with small children typically select the 20-30 year range due to combined childcare, mortgage and educational expenses.
Outstanding obligations. Mortgages represent the principal debt for most households. Insuring against the mortgage balance guarantees survivors have autonomy in their next steps without being pressured by financial constraints.
Future schooling costs. Include a reasonable per-child amount based on current costs. Planning for this now makes more sense than obtaining supplemental coverage afterwards.
Current protections. Include accessible money in savings and employer-sponsored insurance plans. Most employer plans terminate when employment ends, so many applicants include only a portion of group coverage in their calculation.
Once you've determined an amount, our quoting system displays the costs across all available terms from 10 up to 30 years for every carrier. Many people increase their estimate somewhat because age-related rate increases are minimal in the younger years.