Guide
How much life insurance do you need?
An interactive tool plus explanation of the thinking: how many income years you need, what debts matter, education funding and resources you already have.
The standard approach involves calculating your income losses over the covered years and subtracting any existing coverage. Perfect precision isn't necessary here—term policies are sold in whole number amounts, so the goal is simply a reasonable figure that would keep your household functioning through the critical years.
Coverage estimate
Use this formula: (annual income × years of coverage needed) + outstanding debts + child education expenses − current coverage, then round to the nearest $5,000. This is a starting point for your decision-making, not professional guidance.
Why those inputs
Income duration. Financial professionals commonly recommend 10 to 20 years of income replacement, though the right timeframe for you depends on when your family members would no longer need that support. In La Mirada, many families with young kids opt for 25 or 30 years since expenses for childcare, housing and schooling often compound during these years.
Debts. Mortgages represent the single biggest financial obligation for most families. Life insurance enough to satisfy this obligation gives your family the freedom to choose their path, rather than having finances make the decision for them.
Education. Set aside a rough amount for each child's college or other education, based on current costs. It's easier to account for this now than to apply for additional coverage later on.
Existing coverage. Cash reserves set aside for emergencies and insurance coverage obtained through your employer. Remember that employer-provided coverage typically disappears if you leave the job, so many people discount it when planning.
Once you've determined your target amount, the quote tool will display quotes for 10, 15, 20, 25 and 30-year periods, showing you what each major carrier charges. It's typical for people to add a bit more coverage than their initial estimate suggests, since the added monthly cost is usually small when you're younger.