Guide
How much life insurance do you need?
A tool for estimation plus the thinking behind each component: income needs, obligations, school costs, and resources you already have.
A common approach: total your income that needs protection, then subtract existing resources. This isn't designed to be precise—term plans are sold in increments, and the aim is getting close enough that survivors have breathing room for the years ahead.
Coverage estimate
Estimate = annual income × years of need + debts + children's education − current savings and group insurance, rounded to the nearest $5,000. This is a rough guide, not personalized advice.
Why those inputs
Income years. Most planners suggest ten to twenty years; the exact length depends on how long your dependents will need support. Households in La Mirada with young children often opt for the longer range due to overlapping costs for childcare, housing and schooling.
Debts. Most families carry a mortgage as their largest debt. An adequate death benefit can clear the mortgage, giving survivors the option to stay if they wish rather than being forced to relocate.
Education. Set aside a rough figure per child based on today's dollars. Addressing this now avoids the need to layer in additional coverage later.
What you have. Count available savings and employer-provided coverage. Employee coverage often ends when employment ends, so factor in only the portion you'd keep.
Once you settle on an amount, take it to the quote tool and run the numbers across 10 to 30 year terms from all participating carriers. Many people select slightly more than their initial estimate because at younger ages the monthly cost difference is typically modest.