Guide
How much life insurance do you need?
A tool for the math, plus explanations of the four main categories you're adding up: income years, debts, schooling, and what's already set aside.
A simple way is to sum up how many years of income you'd want covered and add any debts beyond what savings would handle. Don't stress the exactness; policies are sold in round dollar amounts anyway, and what you want is a number that holds things steady through the years that count.
Coverage estimate
Total = (annual income × years of support) + remaining debts + education goals − savings and group coverage, rounded to $5,000. This is just a starting estimate, not advice.
Why those inputs
Income years. Most advisors suggest 10 to 20 years; pick based on how long dependents would need income. Families with young children in Folsom typically pick longer periods because childcare, rent or mortgage, and schooling are all expensive while kids are at home.
Debts. Mortgages are usually biggest. A death benefit equal to your unpaid balance lets survivors choose to stay or move without that decision being forced by cash flow.
Education. Set aside a typical per-child amount in today's dollars. Locking it in now beats trying to add a second policy later.
What you have. Savings reserves, and any group term insurance at your job. Keep in mind that group coverage walks out the door when you do, so most people count only part of it.
Once you've settled on a coverage amount, use the quote tool to see what that costs for 10, 15, 20, 25, or 30 years across all carriers. Many people find that boosting the estimate by a bit makes sense, since the cost difference shrinks at younger ages.