Guide

How much life insurance do you need?

A starting point for your coverage estimate using four basic categories: years of income to replace, major debts to clear, education goals for dependents and assets already in place.

Add income years, debts, education and subtract what you already have, then round to a comfortable number. Precision is not the goal; the goal is avoiding guesswork. Term policies are sold in $50,000 increments, so round numbers are normal.

Why those inputs

Income years. How long do your family members depend on what you earn? That determines the term length. Families with young kids typically choose 20-30 years. Parents with older kids or those closer to retirement might pick 10-20 years.

Debts. Start with a mortgage balance, car loans or other debts an heir would inherit. Insurance proceeds large enough to retire the debt give survivors real choice.

Education. Set aside a rough figure per child for college costs in today's money. It is easier to include education now than to buy a second policy later on.

What you have. Include savings you could draw on and group insurance through your job. Keep in mind: group coverage usually ends when employment does, so most people do not count all of it.

Once you have a target number, head to the quote tool to see what a monthly payment would be for 10-, 15-, 20-, 25-, or 30-year terms across every carrier. People often discover that getting a bit more coverage costs far less per month than expected at your current age.