Guide
How much life insurance do you need?
A worksheet and the logic supporting it: how many years of income, what you owe, education costs, and what you've already set aside.
Most people add up what their income could have covered, then subtract what is already in place. The math doesn't need to be exact because term policies come in chunks, and the purpose is straightforward: a sum that stabilizes the household through the critical years.
Coverage estimate
Estimate = income × years + debts + education − what you already have, rounded to the nearest $5,000. This is a starting framework, never financial advice.
Why those inputs
Income years. Financial advisors often suggest ten to twenty years as the timeframe; your choice depends on how many years your dependents rely on your paycheck. Families with young children in Carlsbad frequently go longer because expenses for care, housing and tuition bunch up.
Debts. For most people, the mortgage is the biggest liability. Enough coverage to retire the mortgage gives survivors the freedom to stay if they wish, without financial pressure pushing them out.
Education. Set aside a ballpark figure per child in current dollars. Including it now is simpler than buying more insurance afterward.
What you have. Money in the bank, and any group policy from your employer. Group policies often terminate when you leave the job, so factor that in.
Once you settle on a dollar amount, visit the quote tool to view costs across carriers for 10-, 15-, 20-, 25- or 30-year periods. Purchasing slightly higher coverage is typical, as monthly premiums for young people scale gradually with coverage amount.