Guide
How much life insurance do you need?
A tool to help you work through the math: income years, liabilities, education needs, and existing resources—plus the logic behind each.
A straightforward approach: sum up the income years you want covered, add anticipated expenses like education, subtract what's already saved or insured, then round to a convenient number. Exact isn't required—term policies come in round amounts, and precision matters less than having enough to maintain stability during vulnerable years.
Coverage estimate
Quick estimate: (annual income × number of years) + expected debts + education costs − current savings and group coverage, rounded to $5,000. Use this as a beginning, not as personalized financial counsel.
Why those inputs
Income years. Financial planners commonly recommend coverage spanning ten to twenty years of income, based on how long dependents would need financial support. In Watsonville, households with young children often choose the longer timeframe since school costs, childcare expenses, and housing payments frequently overlap.
Outstanding debts. For most households, the mortgage is the biggest one. Life insurance proceeds sufficient to pay it off give your family the freedom to choose their path forward, rather than having financial pressure force the decision.
Education costs. Set aside a rough estimate per child in current dollars. It's simpler to fold into your initial coverage amount now than to buy a separate policy to fill a gap later.
Existing coverage and assets. Include cash on hand and workplace group insurance in your baseline. Note that group policies typically end if employment ends, so accounting for only a fraction of it is prudent.
Once you settle on a coverage goal, the quote tool displays the monthly cost for each carrier across 10- to 30-year terms. Many people buy modestly above their estimate because the extra cost per month is minimal when you're younger.