Guide
How much life insurance do you need?
Use a calculator and understand the logic: earning years, money owed, education expenses and what you currently own.
Add together the lost earnings your household would face plus subtract existing resources already earmarked for this purpose. The result is not meant to be exact—term coverage comes in standard denominations—and the aim is simply a number large enough to sustain your family through the critical years.
Coverage estimate
Calculation: (annual earnings × number of years) + existing debts + education costs − current savings and workplace coverage = your rough amount. Round to the closest $5,000. This is only a starting estimate.
Why those inputs
Years of earnings needed. Insurance specialists typically recommend ten to twenty years of earnings replacement; your specific needs hinge on how far into the future your dependents would require income. Orange County households with young children often lean toward the upper range because preschool, housing payments and school expenses reach their peak during the same period.
Outstanding loans and obligations. For most families, a home loan represents the single biggest debt. Life insurance sufficient to eliminate this debt gives your loved ones the freedom to choose their path forward without financial urgency.
School and training costs. Set aside a reasonable sum per dependent child in current dollars. Adding this now is simpler than acquiring supplemental insurance down the road.
Current resources. Include bank balances and cash reserves that could go to expenses, along with employer-provided coverage. Since job-connected coverage typically ends with employment, most households only count a fraction of that benefit.
Once you know your target amount, the quote tool will calculate costs for 10-, 15-, 20-, 25- and 30-year options from every participating carrier. Going somewhat above your estimate is frequently sensible, since the additional monthly cost is minimal when you are younger.