Guide
How much life insurance do you need?
A calculator plus the logic behind it: how many income years, outstanding debts, education costs, and existing coverage or savings.
A straightforward method: total your income replacement needs and subtract existing assets. The calculation isn't perfect, and it doesn't require precision—insurance buys in round amounts, with the goal being coverage sufficient to sustain your household through the essential years.
Coverage estimate
Formula: (annual income × duration in years) + outstanding debts + education expenses − current resources, then round to nearest $5,000. Use this calculation as a beginning estimate, not as personalized financial direction.
Why those inputs
Income years. Most financial professionals suggest ten to twenty years of income; the appropriate duration depends on your dependents' support timeline. Families in San Francisco with younger children frequently opt for the higher range given simultaneous childcare, housing, and education demands.
Debts. For most households, the mortgage represents the single biggest obligation. Coverage sufficient to pay off that debt gives loved ones genuine choice about whether to maintain the home.
Education. Set aside a modest amount per child in current dollars. Incorporating this now is far simpler than adding a separate policy down the road.
What you have. Any liquid funds and any employer-provided coverage you're enrolled in. Keep in mind that group policies typically terminate when employment ends, so most households count only a fraction of that benefit.
Once you've settled on a figure, the quote tool shows how much that benefit costs from each carrier across 10 to 30 year periods. It's common to increase the estimate slightly since monthly premiums are typically low at early ages.