Guide
How much life insurance do you need?
An interactive calculator plus the thinking behind it: how many income years matter, what your debts total, education costs, and existing financial safety nets.
A standard approach: calculate what your income supports, subtract what you've already set aside or covered. While not exact, this works fine because term amounts come in large increments, and the practical goal is simply a figure your household could live on.
Coverage estimate
Estimate = (annual income × years needed) + outstanding debts + estimated education − existing savings or group coverage, then round to $5,000. This is your starting point, not professional guidance.
Why those inputs
Income years. Financial planners generally suggest ten to twenty years as the baseline, adjusted based on your dependents' timeline. Santa Clara families with young children commonly extend toward the upper end, since costs for childcare, housing and education overlap during those years.
Debts. A mortgage typically represents the biggest debt obligation. Coverage large enough to eliminate it allows your family to make housing decisions freely rather than being forced by financial pressure.
Education. Estimate a per-child amount using current-year tuition. Planning for education now is simpler than purchasing an additional policy to cover it later.
What you have. Count liquid savings and employer-sponsored coverage. Remember that company coverage typically disappears when employment ends, so it's often counted as partial.
Once you settle on an amount, use the quote tool to see pricing across all available terms (10 through 30 years) from different carriers. Frequently, going slightly above your estimate is worth it because the monthly premium jumps are minimal when you're younger.