Guide
How much life insurance do you need?
Includes an estimation tool plus the logic: income duration, outstanding obligations, educational costs, and your existing resources.
The standard approach involves calculating what your income would support, then deducting existing resources. Perfect precision isn't required since policies come in standard amounts, and the objective is a number adequate to maintain stability during the critical years.
Coverage estimate
Formula: (income × years) + total debts + education costs − current coverage, rounded to the closest $5,000. This serves as a starting reference, not professional guidance.
Why those inputs
Income years. Financial advisors typically recommend 10 to 20 years of income; your situation dictates the best length. Households here with young dependents frequently opt for the higher end since childcare, housing, and education expenses cluster.
Debts. The home loan usually tops the list for most households. Coverage eliminating it allows family members to choose their next steps based on preference, not financial necessity.
Education. Budget an estimated amount per dependent in current dollars. Incorporating this now beats purchasing extra coverage afterward.
What you have. Bank funds accessible for emergencies and workplace coverage. Since employment typically ends workplace protection, many factor in only a fraction.
Once you've settled on a figure, the quote tool displays costs across 10, 15, 20, 25, and 30 years from all carriers. Choosing slightly higher coverage is typical since premium increases are modest early in life.