Guide
How much life insurance do you need?
A calculation tool plus explanations of the key factors: years of replacement income, outstanding debts, schooling expenses, and resources already in place.
A straightforward calculation: determine what your income currently covers, then subtract existing assets and insurance. This method lacks perfect precision, but does not require it—coverage amounts are standardized in increments, and your objective is a level that preserves household stability through those critical years.
Coverage estimate
Basic calculation: (annual income × number of years) + other debts + education costs − current savings and existing coverage = recommended amount. Adjust to the next $5,000 increment. This is an approximation, not personalized guidance.
Why those inputs
Years of income replacement. Fifteen to twenty-five years is the typical range that financial professionals recommend, adjusted based on when your dependents will become self-sufficient. In San Diego, where families with young children face substantial childcare, housing, and educational costs simultaneously, many households opt for the upper end of this range.
Outstanding loans and obligations. A home mortgage typically represents the biggest debt load. Sufficient coverage to eliminate it gives your family the freedom to decide their housing situation without financial pressure.
Schooling expenses. Budget a reasonable figure per child using today's dollars. Including this now is more practical than purchasing extra insurance later.
Current assets and coverage. Include available savings and workplace insurance. Since workplace coverage typically terminates upon leaving the job, only count a portion of it when calculating.
Once you settle on a coverage amount, the quote comparison tool displays how much that amount would cost from each carrier over terms ranging from 10 to 30 years. Opting for additional coverage beyond your estimate is typical because cost differences are minimal when you are young.