Guide
How much life insurance do you need?
A structured approach and the assumptions behind it: how many years of income, outstanding debts, education costs, and what you currently own.
A straightforward approach: sum up what your income would need to replace, subtract what's already set aside, and round to the nearest $50,000 bracket. The calculation doesn't have to be precise—coverage amounts come in round increments, and the goal is general adequacy for the years that matter most.
Coverage estimate
Estimate = (income × years) + debts + education − existing resources, rounded to the nearest $5,000. Use this as your starting point, not as guidance.
Why those inputs
Income years. Most planners suggest replacing 10 to 20 years of income; your situation determines the right number. Support duration depends on how long dependents will need financial backing. For Santa Monica families with young children, the higher end often applies since housing, childcare and schooling expenses peak simultaneously.
Debts. Your largest debt is typically a home loan. Coverage large enough to eliminate it gives your survivors the choice to stay in their home without pressure from income loss.
Education. Estimate a modest amount per child in today's dollars. Building it into coverage now is easier than buying supplemental insurance later.
What you currently own. Bank savings and emergency funds count. Group life through an employer typically counts as well, though group coverage usually terminates when employment ends, so many people plan for only a fraction of it.
Once you have a coverage amount in mind, the quote tool lets you see what that benefit costs across all terms (10 to 30 years) from every carrier. People often buy a bit more when they see how small the monthly increase is at younger ages.