Guide
How much life insurance do you need?
A tool and the methodology behind it: calculating income replacement, factoring debts, planning for education, and accounting for existing coverage.
The standard method involves tallying your projected income loss and subtracting existing assets. Perfect precision isn't required because term policies are sold in $50,000 increments, and the objective is simply a sufficient benefit to maintain household stability through the critical years.
Coverage estimate
Estimate = (annual income × years) + total debt + education costs − current savings and existing coverage, rounded to $5,000 intervals. Use this as a starting reference, not a recommendation.
Why those inputs
Income duration. Most financial planners suggest 10 to 20 years; the specific term depends on how long dependents will require income support. In San Rafael, families with young children frequently opt for longer terms because the peak years of childcare, housing, and school expenses overlap.
Debts. For most households, a mortgage represents the biggest debt. A benefit equal to the mortgage balance allows survivors the freedom to stay in the home if they choose, rather than being forced to sell due to financial pressure.
Education. Allocate a rough per-child amount in current dollars. It's more practical to include educational funding now rather than purchasing a second policy later.
Existing coverage. Consider any personal savings reserves and employer-provided insurance. Many group plans end if employment changes, so conservative estimates often count only a fraction.
Once you know the coverage amount you need, use the quote tool to see pricing across 10, 15, 20, 25, and 30-year options from every carrier. Applying for slightly higher coverage is a common choice since the monthly cost difference is minimal for younger applicants.