Guide
How much life insurance do you need?
Our calculator and the logic supporting it: the years of income your household needs, major debts, education savings target, and resources you have already accumulated.
The standard approach involves totaling the income you would have provided, then subtracting any existing resources. This method is intentionally approximate because life insurance is purchased in neat increments, and the aim is a reasonable figure that maintains household stability through the critical years.
Coverage estimate
Estimated need = (annual income × years of support) + debts + education costs − current assets, rounded to the nearest $5,000. This formula is a reference point for discussion, not professional advice.
Why those inputs
Income years. Financial professionals typically suggest ten to twenty years of income replacement, based on how long your dependents will need support. Families in Costa Mesa with young children frequently opt for the longer end of this range since the peak years for childcare, housing, and education expenses happen simultaneously.
Debts. For most households, a mortgage is the biggest outstanding debt. A coverage amount that would pay it off gives the surviving household the freedom to choose what to do with the home rather than being forced by immediate cash needs.
Education. Set aside a modest amount per child, expressed in current dollars, for higher education or vocational training. It is simpler to include education costs in your initial policy than to purchase an additional policy later.
What you have. Liquid savings available to the household, plus any group life insurance you receive through employment. Since group coverage typically terminates when employment ends, many individuals count only a portion of their workplace coverage.
Once you have calculated a target, the quoting tool will show monthly costs for that amount across 10-, 15-, 20-, 25-, and 30-year terms from all available carriers. Many people choose to purchase slightly more than their initial calculation because the premium increase is modest when you are younger.