Guide
How much life insurance do you need?
Tool with built-in calculator and step-by-step reasoning: covering income, debts, schooling, and resources you currently have in place.
Start by totaling what you currently earn and would be gone without, then subtract what's already insured through work or savings. You won't need exact numbers—term policies come in $5,000 increments anyhow—but a solid estimate keeps your coverage aligned with actual need.
Coverage estimate
Calculation: (annual income × number of years) + debts + education funds − existing coverage, rounded to the nearest $5,000. Think of this as a foundation, not specialized financial advice.
Why those inputs
Income replacement span. Most advisors suggest covering ten to twenty years of lost income; the right duration depends on how long dependents need financial support. In Compton, families with school-age kids commonly go with the longer range because housing, childcare, and education costs often overlap.
Outstanding balances. A home loan is the single biggest obligation for most households. If that loan were paid off from insurance proceeds, your family wouldn't be forced to relocate due to lack of cash.
College and training. Set aside a reasonable amount per child in current dollars. It's simpler to choose a larger benefit that covers this now than to buy more insurance down the line.
Current resources. Bank accounts available to draw on, plus employer insurance if you have it. Many employees only count a portion of group coverage because it typically ends once employment does.
Once you've settled on a number, the quote tool will display the monthly cost for 10, 15, 20, 25, and 30-year terms side by side from each carrier. Many people find that increasing coverage slightly makes sense at younger ages because the monthly cost increase is quite small.