Guide
How much life insurance do you need?
A calculator for working through each component: income years, outstanding debts, education savings and what you currently own.
The standard approach is to total your income's obligations and subtract assets currently in place. Precision is unnecessary: term policies come in round dollar amounts, and the objective is a figure that maintains your household through your working years.
Coverage estimate
Estimate = income × years + debts + education − existing assets, rounded to the nearest $5,000. This is a rough guide, not professional counsel.
Why those inputs
Income years. Advisors typically recommend ten to twenty years of replacement income; the exact figure depends on how long dependents need support. Families in Paramount with young children frequently select the higher end because combined costs for childcare, housing and education peak simultaneously.
Debts. The most significant debt for most households is the mortgage. Sufficient coverage to satisfy the mortgage gives surviving family members the choice to stay or relocate, rather than being constrained by financial pressure.
Education. Set aside an approximate amount per child in present-day dollars. It's simpler to include education funding in a single policy now than to purchase a separate policy later.
What you have. Sum any invested savings and workplace group insurance coverage. Group plans typically end if you leave employment, so many families count only a fraction of group coverage.
Once you have determined your target amount, use the quote tool to see quotes for 10, 15, 20, 25 and 30-year periods from available carriers. Selecting more coverage than your estimate is common, because the cost per month remains modest when you are younger.