Guide
How much life insurance do you need?
An interactive tool plus explanations covering: income periods, financial obligations, higher education, and existing protections.
The standard approach is to determine what your earnings would cover and then subtract existing protections. It's not required to be exact—term insurance is typically bought in $5,000 or $10,000 blocks, and the objective is a realistic amount that maintains family stability during your critical earning years.
Coverage estimate
Calculation: (annual income × years until retirement) + outstanding obligations + education costs − existing coverage, rounded to the nearest $5,000. This gives you a baseline to consider, not a specific recommendation.
Why those inputs
Income horizon. Most financial advisors suggest 10 to 20 years of salary replacement; the best timeframe depends on your dependents' needs. In a San Mateo household with small children, the 20-30 year range often makes sense since childcare, housing and schooling expenses rise significantly during this period.
Liabilities. A home loan represents the biggest obligation for most households. Ensuring you have enough coverage to settle it gives your loved ones the freedom to make choices based on their preferences rather than financial necessity.
College costs. Set aside an approximate amount per dependent child in current terms. Including this upfront is simpler than buying extra protection at a later date.
Existing coverage. Liquid savings reserves and employment-based protection. Keep in mind that many employer plans terminate when you leave the job, so conservative estimates of this category are often appropriate.
After determining your target amount, the quotes page demonstrates how much coverage costs across 10 to 30-year terms with each available carrier. Frequently, individuals opt for slightly higher coverage since the monthly cost difference is minimal at younger ages.