Guide
How much life insurance do you need?
A tool for calculation plus explanation: deciding on years, handling debt, setting aside college funds, and accounting for savings.
Calculate: total income you'd want to replace, then deduct current assets. You don't need perfection; coverage is sold in $1,000 increments, and your goal is a workable figure through the critical years.
Coverage estimate
Math: (salary × duration) + loans + schooling − existing reserves = your target. Round to $5,000. Pure estimation, not a recommendation.
Why those inputs
Years of earnings to cover. Most experts recommend 10 to 20 years; your situation is determined by how long your household would be dependent on that income stream. In a community like Los Altos where living expenses are high and parents invest heavily in schooling, the longer window frequently wins.
Loans and debts. The mortgage is typically the single largest obligation. Electing coverage to clear that loan lets your family remain in your home without being forced into financial hardship.
College and other education. Budget an amount per youngster, expressed in current dollars. Factoring this in now is more efficient than acquiring a second contract later.
Assets and existing protection. Bank balances that could be tapped and company-provided death benefits. Many forget that workplace benefits disappear when employment ends.
With a number in mind, the quote tool lets you see what different carriers charge for 10-, 15-, 20-, 25- and 30-year coverage. It's common to go higher than your calculation since the extra cost is modest when you're younger.